India’s finance minister said on Tuesday that discussions are underway on a global framework to regulate crypto assets, adding that cryptocurrencies cannot be effectively regulated without the cooperation of all countries.

Speaking at an event in the financial capital Mumbai, Nirmala Sitharaman said: “The Indian (G20) presidency has put on the table key issues related to regulation or understanding that there should be a framework to deal with issues related to crypto assets. “

“Active discussions are underway.”

Back in March, the Indian government stated that its money laundering laws would apply to cryptocurrency transactions.

The notice issued at the time stated that the exchange between virtual digital assets and legal tender, the exchange between one or more forms of virtual digital assets, and the transfer of digital assets will be governed by money laundering laws.

India has yet to finalize legislation and regulations on cryptocurrencies, despite the country’s central bank having repeatedly warned against their use. The Reserve Bank of India has said that cryptocurrencies should be banned because they resemble Ponzi schemes.

In February, G20 chair India’s move to promote cryptocurrency regulation was backed by the International Monetary Fund and the United States.

India has expressed its hope that the world will work together to solve the problems caused by cryptocurrencies such as Bitcoin, and the Indian Ministry of Finance has also stated that it has held a workshop for G20 members to discuss how to develop a common framework.

In February, Sitharaman and U.S. Treasury Secretary Janet Yellen discussed strengthening multilateral development banks, global debt vulnerabilities and crypto assets during the G20 finance ministers meeting.

© Thomson Reuters 2023

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