Indian Finance Minister Nirmala Sitharaman has expressed the importance of achieving a global consensus on cryptocurrency regulation. In an interview with Businessline, she emphasized the need for international cooperation, particularly within the G20, to address the challenges of regulating cryptocurrencies.
Sitharaman highlighted that discussions regarding cryptocurrency regulation have been ongoing within India’s Finance Ministry since 2020. She also mentioned that the Reserve Bank of India (RBI) has its own perspective on the matter. The finance minister stressed the importance of establishing a global understanding on how to regulate crypto.
Collaboration with international organizations such as the International Monetary Fund (IMF) and the Financial Stability Board (FSB) has taken place to address crypto regulation. Sitharaman believes that unilateral regulation is ineffective due to the borderless nature of cryptocurrencies.
During India’s presidency of the G20, discussions on cryptocurrency regulation were held, involving the participation of the IMF and FSB. Sitharaman emphasized the need for a global consensus, stating that implementing regulations within just one country would not be successful in regulating a technology that transcends borders.
When asked about the confusion among Indian regulators regarding crypto, Sitharaman clarified that there is currently no confusion. She explained that there are differing opinions among regulators, but it is not a cause for concern as they have not reached a stage where a specific course of action has been decided upon.
Recently, the Securities and Exchange Board of India (SEBI) provided its recommendations on crypto asset regulation to a government panel, advocating for different regulators to oversee various aspects of cryptocurrency trading. The RBI also expressed its concerns about cryptocurrencies, highlighting macroeconomic risks, tax evasion, and fiscal stability issues.
India currently lacks a dedicated regulatory framework for cryptocurrencies. However, a draft bill to regulate digital assets has been created by a government panel in 2021, although it has not been introduced yet. The Financial Intelligence Unit – India (FIU-IND) monitors cryptocurrency-related entities and has authorized crypto exchanges like Binance and Kucoin as virtual asset service providers.
Sitharaman expects that a regulatory framework for cryptocurrencies will be developed through discussions within the G20. She calls for global consensus and international cooperation, particularly through platforms like the G20, to effectively regulate cryptocurrencies.
What are your thoughts on Indian Finance Minister Nirmala Sitharaman’s push for a global consensus on cryptocurrency regulation and her emphasis on international cooperation through platforms like the G20? Let us know in the comments section below.
