India Seeks Common Crypto Framework for All Countries to Deal With ‘Many Collapses and Shocks in Cryptocurrencies’

India’s finance minister, Nirmala Sitharaman, said during her official visit to the U.S. that crypto regulation is a very important part of the discussion by the G20 countries given “so many collapses and shocks in cryptocurrencies.” She stressed: “We seek to develop a common framework for all countries to deal with this matter.”

Indian Finance Minister Niramala Sitharaman is currently on an official visit to the U.S. to attend this year’s Spring Meetings of the World Bank Group and the International Monetary Fund (IMF) which are taking place from April 10 to April 16. She is also representing India at the G20 Finance Ministers and Central Bank Governors meetings on the sidelines of the IMF-World Bank Spring Meetings.

Sitharaman discussed a wide range of topics during her trip, including cryptocurrency regulation. At a roundtable discussion titled “Investment Opportunities for the Long Term: India on the Rise,” the Indian finance minister emphasized that the regulation of cryptocurrencies is a key topic being discussed by the G20 nations under India’s presidency. She stated:

Cryptocurrencies are a very important part of the discussion under India’s G20 presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter.

The Ministry of Finance recently told India’s parliament that cryptocurrency is currently unregulated, noting that “crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage.”

India’s central bank, the Reserve Bank of India (RBI), has repeatedly recommended that the Indian government ban all cryptocurrencies, including bitcoin and ether. In February, RBI Governor Shaktikanta Das said that the G20 finance chiefs widely recognized that cryptocurrency poses major financial stability risks.

However, the government has stated that both regulating and banning cryptocurrencies would require collaboration on a global scale. During the last meeting of G20 finance ministers and central bank governors, the government requested the IMF and the Financial Stability Board (FSB) to prepare “a synthesis paper” on crypto assets.

What do you think about the statements by Indian Finance Minister Nirmala Sitharaman? Let us know in the comments section below.