Regulation of crypto assets requires global coordination: FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman said on Thursday that there was greater acceptance among the member countries of the Group of 20 (G20) that any new regulations on crypto-assets must be coordinated with the EU. global scale.

“I am happy to say that there is greater acceptance among all members of the G20, that any action on crypto assets will have to be global.” The G20, I think, responded eagerly (on the crypto challenge) Sitharaman told reporters at a press conference after a meeting of G20 finance ministers and central bank governors.

“The G20 and its members agree that it will not be possible to have an independent, self-governing country dealing with crypto-assets,” the minister added.

Sitharaman told reporters the group voluntarily answered the question. A “summary paper” would be discussed on issues related to crypto assets during India’s G20 Presidency.

India has said it wants a collective global effort to address the problems posed by cryptocurrencies such as bitcoin, and the finance ministry said in February it had organized a seminar for G20 member states. to discuss how to propose a common framework.

Earlier in February, Sitharaman said: “We are following the study process so that there can be an informed discussion. The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have done their own little work on the issue of crypto and progressing on their own we have now asked them to do the papers and give them to us and how quickly these papers have already been given by the IMF and by the FSB which will be handed over to time for the July meeting. I feel like we are moving in that direction. So something should develop.

She made the remarks while responding to a question regarding consensus among G20 countries on crypto assets during India’s presidency.

“Recognizing the risks associated with private virtual assets, G20 countries have moved closer to developing a coordinated and comprehensive policy approach to managing crypto assets taking into account macroeconomic and regulatory perspectives,” she said. .

The central government under Prime Minister Narendra Modi debated for several years a bill to regulate or even ban cryptocurrencies, but did not make a final decision. The Reserve Bank of India has said cryptocurrencies should be banned as they are akin to a Ponzi scheme.

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