G20 presidency | India aims to develop a tech-driven regulatory framework for cryptocurrency, says Sitharaman

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India will assume the Presidency of the G20 for one year from December 1, 2022 to November 30, 2023

India will assume the Presidency of the G20 for one year from December 1, 2022 to November 30, 2023

India aims to develop standard operating procedures for cryptocurrencies during its G20 presidency next year, Union Finance Minister Nirmala Sitharaman has said, stressing that all countries want the technology to survive but not be misused.

“That (crypto) will also be part of India’s agenda (agenda during the G20 presidency),” Sitharaman told a group of Indian reporters on Saturday before concluding his trip to Washington DC to attend the annual meetings. of the International Monetary Fund. and the World Bank.

India will assume the presidency of the G20 for one year from December 1, 2022 to November 30, 2023. Under his presidency, India is expected to host more than 200 G20 meetings across the country, starting from December 2022. .

Ms. Sitharaman has been making a strong case for global regulation of cryptocurrencies to address the risks of money laundering and terrorist financing.

Noting that the institutions, which are associated with the G-20 or the World Bank or any similar organization, are doing their own assessment and studies of matters related to cryptocurrencies or crypto assets, the Minister said: “We would definitely like to collect all of this and study a little bit and then bring it to the G-20 table so that members can discuss it and hopefully come up with a framework or SOP, so that globally, countries can have a regulatory framework driven by the technology”.

The G20 is an intergovernmental forum made up of 19 countries and the European Union. It works to address major issues related to the global economy, such as international financial stability, climate change mitigation, and sustainable development.

Ms. Sitharaman underlined that no country can effectively manage or regulate cryptocurrencies in any way.

โ€œBut implicit in this is that we don’t want the technology to be disrupted. We want the technology to survive and also be in a position for FinTech and other sectors to benefit from it.

โ€œBut when it comes to platforms, trading assets that have been created, buying and selling for a profit, and more importantly, in all these countries in a position to understand money trading, are we in a position to establish with what purpose? Is being used? Mrs. Sitharaman asked.

He gave the example of the Enforcement Directorate (ED) detecting substantial money laundering, likely cases related to crypto assets and asset trading, recently in India.

โ€œThis concern has been acknowledged by several G20 members saying yes, money tracking, yes money laundering, yes drug abuse, etc. There is an understanding that we need to have some kind of regulation, and that all countries will have to be faithful together about it, no country will be able to handle it individually. So we will certainly have something,โ€ said Ms. Sitharaman.

In July, Ms. Sitharaman said that the Reserve Bank of India (RBI) raised concerns about cryptocurrencies and said that they should be banned as they can have a destabilizing effect on monetary and fiscal stability.

“In view of the concerns expressed by the RBI about the destabilizing effect of cryptocurrencies on a country’s monetary and fiscal stability, the RBI has recommended that legislation be drawn up on this sector. The RBI is of the opinion that cryptocurrencies should be banned.” he said he in a written response to the Lok Sabha.

The RBI has mentioned that cryptocurrencies are not a currency because every modern currency must be issued by the central bank or the government, it told Parliament.

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