During a series of engagements in Bengaluru, India, Indian Finance Minister Nirmala Sitharaman underlined the necessity of reaching a worldwide 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. Crypto assets are still uncontrolled in India, and the government does not register crypto exchanges. Sitharaman noted that because digital assets are transnational and require international collaboration, any rule governing them would require the approval of every country.
Furthermore, as part of its G20 presidency this year, India has made digital asset regulation a priority. By putting this topic on the agenda, India is pressing for global cooperation to build an appropriate framework for cryptocurrency regulation.
Sitharaman argued that no single government can effectively regulate technology-driven, crypto assets because technology has no borders and may simply move through. As a result of its technological nature, it requires all countries to be on board or it will be ineffective.
The Minister was emphatic that this did not entail control over “distributed ledger technology.”
India presently holds the G20 presidency, and it was their proposal that included cryptocurrency legislation on the agenda, which was approved by the board. The G20 has maintained this issue on their agenda for the year, and the IMF has produced a paper on the possible impact of private digital assets on macroeconomic stability.
In addition, the G20-established Financial Stability Board (FSB) will issue a report on financial stability in relation to cryptocurrencies. As a result, India will hold a meeting in September to bring together G20 Presidents and Prime Ministers to discuss digital asset legislation. This summit provides an opportunity for India to take the lead in addressing the difficulties posed by cryptocurrencies and developing a framework for their regulation.
The finance minister also stated that because digital currencies are completely digitalized and technology-driven, the technology is very distributed, and sometimes identity is very difficult to establish, but it has potential, and it will therefore have to be acted upon only with all countries on board.
Any beneficial achievements in digital asset regulation would be actively monitored during India’s G20 presidency. Recognizing the hazards associated with private virtual assets, G20 nations moved closer to creating a coordinated and comprehensive policy approach to dealing with crypto assets by taking macroeconomic and regulatory viewpoints into account.
The Reserve Bank of India, India’s central bank, has maintained a draconian stance on cryptocurrencies, with RBI Governor Shaktikanta Das advocating for stringent regulations. His prior statement proposed that private cryptocurrencies be banned entirely, warning that their unfettered expansion could lead to the next financial disaster.
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