scorecardresearchIndia G20 Presidency aims to develop common framework for crypto risks,

India G20 Presidency aims to develop common framework for crypto risks, says FM

Updated: 12 Apr 2023, 11:50 AM IST
TL;DR.

Industry players believe that such a move will help in the further development of Web3 technology globally

Her remark has come at a time when the crypto market is trying to recover after last year’s episode of FTX’s bankruptcy.  (File photo) PTI

Her remark has come at a time when the crypto market is trying to recover after last year’s episode of FTX’s bankruptcy. (File photo) PTI

Finance Minister Nirmala Sitharaman said that India’s G20 presidency aims to develop a common framework for all countries to deal with risks associated with cryptocurrencies, reported Business Line.

Industry players believe that such a move will help in the further development of Web3 technology globally. She also urged potential investors not to rely on write­ups, written by someone sitting outside the country, for making decisions here. She made these observations during two of her meetings on the first day of her week­long tour of US to attend International Monetary Fund (IMF)­ World Bank meeting.

In an interaction on ‘Resilience of the Indian economy amidst tightening of financial conditions’ at Peterson Institute for International Economics in Washington, Sitharaman reiterated India’s stand on cryptocurrency.

“Cryptocurrencies are a very important part of the discussion under the India’s G20 Presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter, she said.

Her remark has come at a time when the crypto market is trying to recover after last year’s episode of FTX’s bankruptcy, and its spat with Binance which triggered a huge sell­off in the market and reduced liquidity. This event made the world realise the vulnerability of this asset class as they do not have any underlying value.

Taking note of remarks made by the Finance Minister, Rahul Pagidipati, CEO, ZebPay expressed confidence that a regulatory framework ensuring investor protection and a less restrictive tax policy will enhance the growth and adoption of crypto in India and around the world. “We look forward to working with regulators and policymakers to create a healthy regulatory environment that fosters innovation and promotes responsible usage of digital assets,” he said.

Taking this forward, Pratik Gauri, Co­Founder & CEO, 5ire, feels reaching a consensus between parties on virtual assets would be quite challenging, given that various countries, even developed economies in the G20, have primarily embraced it with precautionary measures.

“What remains challenging is the innovation occurring in digital assets. Laws have had a challenging time as is with digitally produced assets, both in monetary terms and in the art world. It will be interesting to see how India addresses it to get the world to get behind the effort to regulate virtual currencies,” he said.

 

First Published: 12 Apr 2023, 11:50 AM IST