FM Nirmala Sitharaman says crypto issue requires immediate attention

Financial Minister Nirmala Sitharaman, who is in the US, said issues related to cryptocurrencies need urgent attention amid the current volatility in the global markets. She said the response of the G20 has to ensure that they do not lose any potential benefits while protecting economies from harm.

While attending the brainstorming session on "Macrofinancial Implications of Crypto Assets" with G20 finance ministers and central bank governors at the IMF's headquarters in Washington, Sitharaman said there is a need for a globally coordinated policy response on crypto assets. She said there is a full range of risks, including those specific to emerging markets and developing economies, due to cryptocurrencies.

Issues related to crypto have emerged as a major point of discussion among G20 countries and there is unanimity among member nations about the urgency to regulate this sector. India currently holds the rotating annual presidency of G20 countries.

In her remarks, Sitharaman said the G20 acknowledges the work of the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in bringing out key elements of policy and regulatory framework.
She also said a synthesis paper, which would integrate macroeconomic and regulatory perspectives of crypto assets, is required.

India has always maintained it wants a collective global effort to deal with problems posed by cryptocurrencies, such as bitcoin, ether. The finance ministry in February said it had held a seminar for G20 member states to discuss how to come up with a common framework.

Cryptocurrencies as a payment medium in India are not regulated by any central authority, like RBI. There are no rules and regulations or any guidelines laid down for settling disputes while dealing with cryptocurrency. 

The Centre via a notification dated March 7, 2023, has brought digital assets and fiat currencies, virtual digital assets (cryptocurrencies) and such other digital assets, their trading, safekeeping and related financial services under the ambit of the Prevention of Money Laundering Act (PMLA).

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