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On Saturday, the Finance Minister of India, Nirmala Sitharaman, said that the country is discussing ways to develop a global regulatory framework for cryptocurrencies with the Group of 20 (G20) members.
Nirmala Sitharaman, the Minister of Finance of India, said at a post-budget meeting with the Reserve Bank of India (RBI) that the Indian government is discussing a unified global approach to regulating cryptocurrencies with fellow G20 members. Bloomberg reports Sitharaman said that if a technology-driven asset such as crypto is to be regulated, “one country alone cannot do anything.” She added
That’s why we are discussing with every country whether we could frame a standard operating procedure that we all can adopt and create a regulatory framework.
India Remains Steadfast in Its Crypto Stance
Although the discussions with G20 members do not include a total ban on cryptocurrencies, Minister Sitharaman previously called for global action against cryptocurrencies. During a session with parliament last year, the minister said the RBI sought a total ban on cryptocurrencies but said that international collaboration was needed to make that possible. At the time, Sitharaman said:
Cryptocurrencies are, by definition, borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.
India’s call for a singular approach to crypto regulation echoes that of the International Monetary Fund (IMF), which has been adamant about developing global standards for regulating cryptoassets. Bloomberg reports that the IMF’s Bo Li and Nobuyasu Sugimoto wrote in a blog recently:
Eventually, we need robust, comprehensive, globally consistent crypto regulation and supervision.
Various Indian Regulators Continue to Call for a Total Crypto Ban
Despite introducing a very harsh taxation rate on cryptocurrencies last year, various authorities in the country continue to denounce cryptocurrencies. Most recently, the governor of the RBI, Shaktikanta Das, called for a complete ban on cryptocurrencies. The governor described crypto as “nothing but gambling,” adding that the definition of crypto remains “very unclear.”
In probably the harshest opinion against crypto, Das even went as far as to say that their perceived “value is nothing but make-believe.” In Das’ view, there is no valid reason to acknowledge crypto as an “asset” or “financial product.” Before calling for a complete ban on cryptocurrencies, the governor boldly said that should crypto be allowed to grow, it may cause the next financial crisis
