Finance Minister Nirmala Sitharaman on Monday said India is discussing with the G-20 member countries the need to develop a standard operating protocol (SoP) for regulating crypto assets.
She said crypto assets and web3 were relatively new and evolving sectors and required significant international collaboration for any specific legislation on these sectors to be fully effective.
Ms. Sitharaman said crypto mining, assets or transactions were completely driven by technology and a standalone country’s effort in controlling and regulating it was not going to be effective.
“In the G20, we’re raising it and having detailed discussions with members so that a standard operating protocol emerges which results in a coherent, comprehensive approach where all countries work together in bringing some regulation,” the Minister said during Question Hour in the Lok Sabha.
The FM was replying to a question by DMK MP T. Sumathy on whether the government had prepared any future roadmap to regulate virtual digital assets/cryptos/web3 sectors in the country.
In reply to a separate question, Minister of State for Finance Pankaj Chaudhary said the government was engaging with G-20 countries to build international coordination on regulating crypto assets.
He said India’s G-20 presidency provided an opportunity to place different priorities, including crypto assets, on the agenda for international collaboration.
Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage.
Therefore, any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards, Mr. Chaudhary said.
“The government is engaging with G-20 countries to build international coordination on policy approach to crypto assets,” Mr. Chaudhary said.