Global Collaboration Required To Effectively Regulate Crypto: Nirmala Sitharaman

MoS Finance Pankaj Chaudhary said India is engaging with G-20 countries to build international coordination on regulating crypto assets.

India's G-20 presidency is said to provide an opportunity to place different priorities, including crypto assets, on the agenda.

Source : Getty

Finance Minister Nirmala Sitharaman on Monday said crypto assets and web3 sectors require significant international collaboration for effective implementation of domestic legislations. She said these are relatively new and still evolving sectors, with no specific regulations. "By definition, these sectors are borderless and require significant international collaboration for any specific legislation on these sectors to be fully effective," Sitharaman said in a written reply in the Lok Sabha.

The minister was replying to a question by DMK MP T Sumathy on whether the government has prepared any future roadmap to regulate virtual digital assets / cryptos/web3 sectors in the country.

In reply to a separate question, Minister of State for Finance Pankaj Chaudhary said the government is engaging with G-20 countries to build international coordination on regulating crypto assets.

He said India's G-20 presidency provides an opportunity to place different priorities, including crypto assets, on the agenda for international collaboration.

Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage.

Therefore, any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards, Chaudhary said.

"The Government is engaging with G-20 countries to build international coordination on policy approach to crypto assets," Chaudhary said. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.