India calls for global coordination to effectively regulate cryptocurrency

BENGALURU: Pointing to the fact that cryptocurrency as a technology is borderless in nature, Union Finance Minister Nirmala Sitharaman reiterated that all countries need to be on board for any regulation mechanism, or else it would not be effective.

Crypto assets are currently unregulated in India. The Indian government does not register crypto exchanges and it maintains crypto assets, by definition, is borderless and requires "international collaboration". She was responding to a question on cryptocurrency during an interactive session on Sunday in Karnataka. "No one country individually, in a matter of technology-driven, a crypto asset, 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,' Sitharaman said.

"The underlying principle is because the digital currencies are completely digitalized and technology-driven, the technology, which is very distributed, and sometimes identity is very difficult to be established, but which has potential, it will therefore have to be acted upon only with all countries coming on board."

A broad discussion on cryptocurrency is currently under consideration in G20 forum, whose presidency is currently with India.

The IMF has given a paper on cryptocurrency and the way it can affect macroeconomic stability. The Financial Stability Board (FSB), which was set up by G-20, has also agreed to give a report that will also focus on financial stability.

Their (FSB) report and IMF report are going to be discussed when G20 Finance Ministers and Central Bank Governors meet in July.

Now, all eyes will be on India's G20 Presidency for any positive headway in cryptocurrency regulation. After the First G20 Finance Ministers and Central Bank Governors meeting in February, Nirmala Sitharaman had said the central government was progressing towards the regulation of cryptocurrency under India's G20 presidency.

"Recognizing the risks attached to the private virtual assets, G20 nations moved a step closer to developing a coordinated and comprehensive policy approach to deal with the crypto assets by considering macroeconomic and regulatory perspectives," she had said then. (ANI)

Also Read: Crypto transactions to be under money laundering: Centre

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