FM Calls For A Globally Coordinated Approach To Regulate Crypto Assets

Reiterating her stance, Finance Minister Nirmala Sitharaman has called on the International Monetary Fund (IMF) to formulate a globally coordinated approach to regulate crypto assets. 

“FM Smt. @nsitharaman discussed role of IMF and other relevant international organisations to develop a globally coordinated approach on the regulation of #CryptoAssets,” the Finance Minister tweeted. 

Sitharaman made the comments during a virtual meeting with IMF’s managing director Kristalina Georgieva to discuss the upcoming G20 Finance Ministers and Central Bank Governors meeting scheduled later this month. 

Besides, Georgieva is also said to have lauded the country for its role in digitising the economy, especially in the area of digital payments. Besides, Sitharaman purportedly told the IMF chief that India will leverage its G20 presidency to strengthen global governance measures for a sustainable globe. 

This is not the first time that FM Sitharaman has called for global regulations to govern the crypto space. In April last year, Sitharaman had pitched the same idea to Georgieva, following which the IMF chief publicly backed India’s demand. 

The demand comes a week after economic affairs secretary Ajay Seth said that India was closely working with G20-backed Financial Stability Board (FSB) to arrive at a consensus on regulating cryptocurrencies during India’s presidency itself. 

India’s concerns around cryptocurrencies are led by issues related to money laundering and terror financing. The matter has also been compounded by the global expanse of cryptos, which make it difficult to track such remittances. Besides, issues such as multiple regulatory frameworks across different territories make it difficult to track such transactions. 

The push also comes at a time when a purported crypto funding has engulfed the entire space, drying up funding for startups. The collapse of giants such as FTX and the Terra Luna crash has made the government and retail investors wary of the space. 

Such has been the RBI’s aversion to cryptocurrencies that governor Shaktikanta Das has, on multiple occasions, called for a ban on cryptos, terming it akin to gambling. 

The central bank has also been exploring options to ‘possibly prohibit’ unbacked crypto assets or devise a common approach to regulate it. 

Meanwhile, the Centre has left no stone unturned to dissuade crypto investors. From introducing a 30% tax on income from virtual digital assets (VDAs) to imposing a 1% TDS on crypto transactions, authorities have tightened screws around the industry. 

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