India eyes synergy to regulate cryptos, voices concern on effects of rate hikes

UDAIPUR: India is discussing the need for cooperation among countries to regulate cryptocurrency assets, drawing up the work in multiple international forums, while also seeking a revamp of the multilateral institutions so that they can meet requirements of developing nations.
Given that the issues are part of the finance track, which involves finance ministers and central bank governors, economic affairs secretary Ajay Seth made a presentation to Sherpas on Monday.
Cooperation on cryptocurrency is an issue repeatedly flagged by Prime Minister Narendra Modi and finance minister Nirmala Sitharaman as India decides how to handle the asset, which has been prone to large price swings with the Reserve Bank of India as well as some of the other central banks voicing their concerns.
There is, however, a view that given the entry of the asset and the way technology is shaping up, there may be a need to have a regulatory framework in place.
Besides, the government has also highlighted its concern over the spillover effects of rate hike actions in advanced economies on emerging markets, even as there is acknowledgement of the fact that every country will first seek to secure its interests.
Another issue that India is seeking to underline is the need for infrastructure finance for developing nations. This is also linked to the focus on revamp of multilateral institutions, which were set up in the post second world war period, with climate finance becoming a major issue.