“Finance Minister Calls for Crypto Regulation Framework”

Finance Minister Nirmala Sitharaman has emphasized the need for establishing a framework to address the challenges posed by crypto assets during her address at the Global Fintech Fest. She highlighted the significance of global cooperation in tackling cyber threats and regulating crypto assets effectively.

India, under its presidency in the G20, has presented issues related to regulating and creating a framework for crypto assets. The International Monetary Fund (IMF) and Financial Stability Board (FSB) have also submitted synthesis papers on the subject. Sitharaman acknowledged that cryptocurrencies represent both a threat and an opportunity, underscoring the necessity of global collaboration to ensure responsible financial regulation.

This announcement comes as the Indian government resumes discussions on formulating comprehensive regulations and taxation guidelines for crypto assets, previously stalled while awaiting a global framework. Although cryptocurrency taxation was introduced in the previous year’s budget, substantive regulations were not put in place despite the Reserve Bank of India’s call for a ban. Sitharaman had previously emphasized the need for international collaboration in regulating or banning cryptocurrencies due to their borderless nature.

Sitharaman also stressed the importance of cross-border partnerships in the interconnected world of financial technology. She highlighted the threats, including cyberattacks, that must be addressed to build a responsible global financial system. The Finance Minister encouraged fintech companies to invest heavily in robust security measures to protect user data and financial transactions, ultimately fostering trust and sustainability in the financial ecosystem.

Re-reported from the article originally published in The Indian Express.