Indian FM emphasizes need for global consensus on crypto regulation

• Indian Finance Minister Nirmala Sitharaman has emphasized the necessity of reaching a global consensus on cryptocurrency regulation.
• The Minister was emphatic that this did not entail control over “distributed ledger technology.”

Indian Finance Minister Nirmala Sitharaman has emphasized the necessity of reaching a global consensus on cryptocurrency regulation.

Sitharaman believes that a universal agreement is required to effectively govern private digital assets while allowing the use of digital assets to operate freely. 

The Finance Minister was speaking at an event held in Bengaluru, the Silicon Valley of India when she made these remarks. 

Sitharaman stated:

“No one country individually, in a matter of technology-driven, crypto assets, can effectively control it, because technology doesn’t have any borders, it can just pass through. So the very character of it being technology driven requires all countries to be on board, or else it will not be effective.” 

The Minister was emphatic that this did not entail control over “distributed ledger technology.”

India puts forward crypto regulation as a key agenda for G20

The regulation of digital assets is a key agenda in India’s G20 presidency for this year. By putting this topic on the agenda, India is pressing for global cooperation to build an appropriate framework for cryptocurrency regulation.

The International Monetary Fund (IMF) has released a report that examines the possible influence of private digital assets on macroeconomic stability.

Besides, the Financial Stability Board (FSB), established by G20, also issued a report on financial stability in relation to decentralized finance and cryptocurrencies.

In September, India will host a meeting that will bring together G20 Presidents and Prime Ministers to tackle the subject of digital asset regulation.

India plans to use this opportunity to take the lead in addressing the difficulties posed by cryptocurrencies and developing a framework for their regulation.

The Reserve Bank of India (RBI) has maintained a strict view regarding cryptocurrencies; Governor Shaktikanta Das advocated for strict measures.

He had previously suggested that private cryptocurrencies should be banned altogether, warning that their untethered growth could lead to the next financial crisis.