Talks Underway for Global Framework on Crypto Rules, Says FM Nirmala Sitharaman

Discussions are underway on a global framework to regulate crypto assets, India’s finance minister said on Tuesday, adding that cryptocurrencies could not be regulated efficiently without the cooperation of all countries.

“India’s (G20) presidency has put on the table key issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets,” Nirmala Sitharaman said at an event in the financial capital of Mumbai.

“Active discussions are happening.”

Back in March, the Indian government said that its money laundering laws would apply to trade in cryptocurrencies.

The exchange between virtual digital assets and fiat currencies, the exchange between one or more forms of virtual digital assets, and the transfer of digital assets will be covered under money laundering laws, the notification released at the time said.

India is yet to finalise legislation and regulations surrounding cryptocurrencies even as the country’s central bank has cautioned against their use multiple times. The Reserve Bank of India has said that cryptocurrencies should be banned as they are akin to a Ponzi scheme.

G20 president India’s push to regulate cryptocurrencies gained support from both the International Monetary Fund and the United States in February.

India had said it wanted a collective global effort to deal with problems posed by cryptocurrencies such as bitcoin, and the finance ministry had said it had held a seminar for G20 member states to discuss how to come up with a common framework.

In February, Sitharaman and US Treasury Secretary Janet Yellen had discussed strengthening multilateral development banks, global debt vulnerabilities, and crypto assets on the sidelines of the G20 finance chiefs meeting.

© Thomson Reuters 2023

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