Regulation Of Cryptocurrency Sector On Agenda For G20 Meeting, Says Nirmala Sitharaman The Economic Survey released on January 31st, highlighted the need for a common approach for the regulation of cryptocurrency, adding the underlying risks and high volatility of the sector
By Teena Jose •
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Union finance minister Nirmala Sitharaman, last Friday, had said that meetings will be held with finance ministers and central bank governors of G20 countries on the regulation of the cryptocurrency sector.
In a post-Budget analysis with Network18 Group's MD Rahul Joshi, the finance minister said that the central bank will be recognized as the authority to issue cryptocurrencies.
While talking about her agenda for the G20 meeting expected to happen in Bengaluru in this month, Sitharaman said in a statement that, "We will be looking at global SOP to be available and agreed upon for regulating crypto assets while recognising the central bank as the authority for issuing cryptocurrencies. The rest of the assets created outside that, are using very useful financial technologies, even those have to be discussed because regulations cannot be done by one country singularly, it has to be a collective action because technology doesn't break any borders."
As per reports, the Economic Survey released on January 31st, highlighted the need for a common approach for the regulation of cryptocurrency, adding the underlying risks and high volatility of the sector. On the backdrop of this, some of the industry players expected to get clarity on crypto at this year's G20 Presidency. But they were unsatisfied with the Budget announcement as there was no announcement made for the sector.
On February 4th, Economics Affairs secretary Ajay Seth, has also reportedly said that the legislation governing the crypto assets would be implemented this year. He also added that the technology of crypto assets like blockchain and others can be used but its use in the financial sector can have several risks. In the course of this year, measures around crypto would be brought out.
Rajagopal Menon, vice president, WazirX, a cryptocurrency trading platform, in a news report was quoted as saying, "With India as the president of the G20, we can set the agenda for regulation which the rest of the world will follow. In general, the fundamental regulatory principles used in the conventional banking industry can be adapted in the cryptocurrency industry."
