Discussions on global framework to regulate crypto underway: FM Sitharaman

Sitharaman added that cryptocurrencies can not be regulated efficiently without the cooperation of all countries

Discussions on a global framework to regulate crypto assets are underway, Finance Minister Nirmala Sitharaman said at the Global Fintech Fest 2023 in Mumbai on Tuesday. She added that cryptocurrencies can not be regulated efficiently without the cooperation of all countries.

"India's (G20) presidency has put on the table key issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets," Sitharaman said, as reported by news agency Reuters. "Active discussions are happening."

Earlier on Tuesday, Business Standard reported that the Financial Stability Board (FSB) and the International Monetary Fund (IMF) have circulated their synthesis paper on regulating crypto assets among the member countries. The paper has set out policy approaches and a comprehensive roadmap for the countries and is expected to be made public on September 7.

Further, the finance deputies of the G20 countries will meet this week on September 6 and September 7, in the run-up to the leaders' summit, to discuss some of the issues relating to debt distress and digital public infrastructure. The G20 Summit will take place in New Delhi on September 9 and 10.

India has also been elected to co-chair the Global Partnership for Financial Inclusion (GPFI), with Italy for the next three years. The GPFI is an inclusive platform for G20 countries, interested non-G20 countries, and relevant stakeholders to carry forward work on financial inclusion.

In its initial report on regulating crypto assets released in July, the FSB had called for a raft of measures, including data collection and reporting, cross-border cooperation, a governance framework, and regulatory power for authorities. But the FSB report, while covering the risks to financial stability, had not addressed the key concerns of India around crypto assets.

The report said that it does not comprehensively cover all specific risk categories related to crypto-asset activities, such as anti-money laundering, combating the financing of terrorism, data privacy, cybersecurity, consumer and investor protection, market integrity, competition policy, taxation, monetary policy, and monetary sovereignty.