Indian Finance Minister Hints G20 Favors Global Crypto Regulation

Indian Finance Minister Hints G20 Favors Global Crypto Regulation

The Union Finance Minister of India announced that the G20 finance ministers and central bank governors have agreed that global crypto regulation is needed. "Any action on crypto assets will have to be global," she said, adding that the G20 discussion on crypto was "very substantive."

Discussion on Crypto Oversight and Challenges

The Union Finance Minister of India, Nirmala Sitharaman, spoke about the discussion on crypto regulation during a press briefing on Thursday that followed the G20 finance ministers and central bank governors meeting, held on the sidelines of the annual spring meetings of the International Monetary Fund (IMF) and the World Bank.

Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das co-chaired the meeting. The G20 finance ministers and central bank governors discussed matters about the oversight of cryptocurrencies, along with the emerging challenges.

Sitharaman said:

"The discussion on crypto assets highlighted that it cannot be confined to one part of the world. Its implications can impact both emerging and developed economies. Thus, global policy responses to crypto-assets are required."

"I am glad to say that there is a greater acceptance among all G20 members that any action on crypto assets will have to be global," Sitharaman reiterated, adding that "the G20, I think, has responded fairly and with alacrity" to the challenges posed by crypto assets.

In reply to a question at the press briefing, Sitharaman said: "The G20 and its members agree that an independent, standalone country cannot deal with crypto assets and that a globally coordinated understanding is needed for regulating crypto assets."

Referring to the work on a joint technical paper on crypto by the IMF and the Financial Stability Board (FSB), the Indian finance minister said:

"During our presidency, there is a discussion on the IMF paper. The FSB paper will also be taken up, and a synthesis paper will be prepared from the IMF and the FSB papers."

Issues of Macroeconomic Stability

Sitharaman announced that a discussion is likely to be scheduled in September and October, and at the "end of the day, we could see a roadmap after the G20 members reach a consensus, and then it can be taken forward on specific actions of regulation as and when the G20 takes a call."

Sitharaman also noted that crypto assets can potentially cause macroeconomic instability, stating:

"Today, we are in a position to see how countries are now recognizing that it is not just a crypto asset regulatory issue, where countries will have to come together, but... there can be issues with macroeconomic stability itself."

In the conclusion, Sitharaman said the crypto discussion among the G20 members was "very substantive," adding that all of the G20 finance chiefs came to an agreement that crypto oversight "has got to be globally handled."

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