The G20 nations, under the leadership of India’s presidency, are actively discussing the establishment of a global framework for regulating crypto assets. Indian Finance Minister Nirmala Sitharaman confirmed the ongoing discussions during the Global Fintech Fest on September 5.
A unified approach to crypto regulation
Sitharaman revealed that India’s presidency has initiated key discussions concerning the regulation of crypto assets. These discussions have been enriched by in-depth papers from global organizations such as the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Organisation for Economic Co-operation and Development (OECD). The Finance Minister emphasized that crypto is both “a threat as well as an opportunity,” indicating the complex nature of the asset class.
India has been contemplating crypto regulation for several years. In 2019, a draft crypto bill was submitted to the Ministry of Finance but was never taken up in parliament. Last month, India proposed a roadmap for introducing a global regulatory framework for crypto assets. Indian Prime Minister Narendra Modi has also stressed the need for a global framework, highlighting that the rapid pace of technological change should be met with adoption, democratization, and a unified approach.
Global cooperation: The key to financial security
Sitharaman highlighted the need for global cooperation to build a responsible financial ecosystem that can effectively regulate cryptocurrencies worldwide. “Global cooperation is absolutely critical,” she added. Since India took over the G20 presidency in the fourth quarter of 2022, the country has consistently emphasized the need for global collaboration in financial security and stability.
The National Payments Corporation of India (NPCI), an initiative led by the Reserve Bank of India and 247 Indian banking companies, is also showing increased interest in blockchain technology. The NPCI recently posted a job opening for a head of blockchain, signaling India’s rising interest in the crypto and blockchain space.