India’s Minister of Finance Nirmala Sitharaman announced that the Group of 20 popularly known as G20 is considering whether to regulate crypto as a collective body. Sitharaman outlined the advanced technology behind virtual assets, demanding a more coordinated effort to regulate the ecosystem. Markedly, India took on the G20 presidency position for 2023 in December.
“Crypto is heavily tech led and less of human intervention. We are talking to all nations that if regulation has to be framed then one country cannot frame it alone. So we are speaking to all for forming a Standard Operating Procedure (SOP) so that it is effective,” the Finance Minister addressed a few reporters. “So all these are part of discussion. The process of discussion is on in G20.”
The G20 is globally known as “the premier forum for international economic cooperation. It plays an important role in shaping and strengthening global architecture and governance on all major international economic issues.” Before assuming the presidency office, India’s Finance Minister declared the country’s plan to introduce certain standard operating procedures (SOPs) for crypto.
G20 Crypto Regulation Talks Heightens
Due to fear of financial instability contributed by the use of cryptocurrencies, Sitharaman emphasized the need for a robust regulatory framework but at the same time noted that it was not a feat that a single nation could achieve. In her argument, global cooperation was the most appropriate solution for effective and efficient control of the crypto ecosystem.
“But if it’s a question of platforms, trading of assets which have been created, buying and selling making profits and, more importantly in all, these countries are in a position to understand the money trade, are we in a position to establish for what purpose it’s being used?” Sitharaman asked.
Her recommendation at the time resonated with members of the G20 because their countries shared similar concerns about the digital asset industry. For a long time, India has been caught between entirely banning cryptocurrencies or developing a regulatory framework for the nascent asset class. More so, the recent events of implosion and several bankruptcies have set the nation on edge.
In a conversation with banking experts and lawmakers, the governor of the Reserve Bank of India (RBI) Shaktikanta Das asserted that crypto held several risks which has a direct effect on the. macroeconomics and stability of a nation. Das states;
“Time has proven that crypto is worth what it’s worth today.”