India has called for a coordinated global effort to tackle issues arising from cryptocurrencies like bitcoin. Finance Minister Nirmala Sitharaman stated that there was a growing consensus among G20 members that any regulations on crypto assets would have to be implemented worldwide. The minister added that it would not be possible for an independent country to manage crypto assets alone, and the G20 had responded positively to the challenge. India has been pushing for a joint international approach to addressing cryptocurrency concerns and organized a seminar for G20 members to discuss creating a common framework in February.
Sitharaman said a synthesis paper on the topic would be taken up during India’s G20 presidency. During the press conference after the G20 finance ministers and central bank governors’ meeting, Sitharaman stated that G20 members were considering macroeconomic and regulatory perspectives to develop a coordinated and comprehensive policy approach to deal with crypto assets.
For several years, the Indian government has considered drafting a law to regulate or ban cryptocurrencies. However, a final decision has yet to be made. The Reserve Bank of India has likened cryptocurrencies to a Ponzi scheme and has called for their prohibition.
Sitharaman emphasized the importance of informed discussions and the need to progress in the right direction regarding cryptocurrencies. She mentioned that the International Monetary Fund (IMF) and the Financial Stability Board (FSB) had been doing their own work on crypto matters and progressing independently. However, the Indian government has requested that the IMF and FSB provide papers for the July meeting. Sitharaman feels they are moving in the right direction and something should develop soon.
The finance minister’s comments come as crypto markets experience high volatility, with bitcoin and other cryptocurrencies dropping sharply in value recently. China’s recent crackdown on bitcoin mining and trading has contributed to the decline in value. India is not the only country concerned about the risks posed by cryptocurrencies. Regulators worldwide are grappling with how to oversee the sector and prevent it from being used for illicit purposes like money laundering and terrorist financing. India’s call for a coordinated global effort is a step in the right direction towards tackling these issues effectively, as stated by reports.
