Crypto asset SoPs…: FM Sitharaman on discussing key regulations with G20 nations

The Finance Minister noted that these sectors are relatively new and constantly evolving, making it challenging for a standalone country to regulate them effectively. She stated that given that crypto assets and web3 are completely driven by technology, it is essential to have a coherent and comprehensive approach that includes international collaboration in bringing some regulation. 

“In the G20, we’re raising it and having detailed discussions with members so that a standard operating protocol emerges which results in a coherent, comprehensive approach where all countries work together in bringing some regulation,” the minister said during Question Hour in the Lok Sabha.

The Finance Minister’s remarks were in response to a question by DMK MP T Sumathy, who inquired if the government had prepared any future roadmap to regulate virtual digital assets / cryptos/web3 sectors in the country.

Sitharaman’s comments suggest that India is taking a measured approach to regulating crypto assets and is seeking to work with the international community to ensure that the regulatory framework is consistent and effective.

The Centre, as well as the Reserve Bank of India (RBI), have often cautioned people regarding crypto currencies.In last year Budget’s speech, Sitharaman imposed a 30% fixed tax rate on all income generated through crypto trading and nonfungible tokens.

Last year in December, RBI governor Shaktikanta Das said the next financial crisis will be caused by private cryptocurrencies, if these assets are allowed to grow. The Rbi Governor had said that his main concern is that cryptocurrencies “don’t have any underlying value”.