India’s Federal Economic Affairs Secretary Ajay Seth said that the Group of 20 (G20) nations are working to develop a policy consensus on crypto assets to guide better global regulation.
The first gathering of the central bank and finance deputies for the G20 is Dec. 13–15 in Bengaluru, India.
Speaking at a press conference on the second day of the event, Seth said research should be done to understand the effects of crypto assets on the economy, monetary policy and the financial industry, Reuters reported.
"The regulation should flow from the policy view taken. In fact, one of the priorities which have been put on the table is to help countries build a consensus for policy approach to the crypto assets," Seth said.
Also Read: Analysis: Will Binance Succumb To Crypto Market Fears?
Demand For Crypto Regulation Increased After FTX Fiasco
The discussions follow the failure of the cryptocurrency exchange FTX FTT/USD, which prompted demands for improved regulation of the cryptocurrency sector.
Following a wave of withdrawals from the trading platform and the failure of a rescue plan, FTX, its sister entity Alameda Research and other affiliates filed for U.S. bankruptcy last month.
The management of global debt risks, finance for climate change mitigation and sustainable development goals, and strengthening multilateral development banks have all been topics of discussion in Bengaluru.
India, the second-most populous country in the world and third-largest economy, became the first country to hold the G20 presidency in November.
The organization, which consists of 19 nations and the European Union, accounts for almost 85% of the global GDP.
Read Next: Senators Marshall And Warren Present A Bill To Tighten Crypto Money Laundering Regulations In The US
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