Union Finance Minister Nirmala Sitharaman speaks in the Lok Sabha during the Budget Session of Parliament in New Delhi.
Finance Minister Nirmala Sitharaman on Monday said that India is in discussion with G-20 member countries on the need to develop a standard operating protocol (SOP) to regulate crypto assets.
She said that crypto assets and Web3 are relatively new and developing areas and that any specific legislation on these areas needs significant international cooperation to be fully effective.
Ms Sitharaman said that crypto mining, assets or transactions were entirely driven by technology and a standalone country’s attempt at controlling and regulating it was not going to be effective.
“At the G20, we are taking it up and having detailed discussions with the members so that a standard operating protocol emerges, resulting in a consistent, comprehensive approach where all countries take a work together.” Lok Sabha.
The Finance Minister was replying to a question by DMK MP T. Sumathi whether the government has prepared any future roadmap to regulate the virtual digital assets/crypto/web3 sectors in the country.
Responding to a separate question, Minister of State for Finance Pankaj Chowdhary said the government is in talks with G-20 countries to create international coordination on regulating crypto assets.
He added that India’s G-20 presidency provided an opportunity to put various priorities, including crypto assets, on the agenda for international cooperation.
Crypto assets, by definition, are borderless and require international cooperation to prevent regulatory arbitrage.
Therefore, any legislation to regulate or ban can be effective only with significant international cooperation on assessment of risks and benefits and development of common classifications and standards, Mr. Chowdhury said.
“The government is working with the G-20 countries to create international coordination on the policy approach for crypto assets,” Chowdhury said.