Nirmala Sitharaman, India’s Finance Minister (FM), stressed the importance of global agreement on cryptocurrency regulation at the virtual spring meetings of the International Monetary Fund and the World Bank Group. She emphasized the need for countries to work together to address challenges and reap the benefits of cryptocurrencies.
The Finance Minister (FM) Sitharaman has voiced apprehension regarding the potential dangers associated with cryptocurrencies such as money laundering, terrorist financing, and consumer protection. China has already taken measures against crypto-related activities, while the US and Europe are developing regulatory frameworks.
India’s stance on crypto regulation has been unclear. In 2019, the government proposed a prohibition on crypto transactions. However, the Supreme Court invalidated the proposal last year, resulting in a rise in cryptocurrency trading and investment in the nation.
India is adopting a nuanced approach to crypto regulation, acknowledging the benefits and risks. The country aims to promote global consensus and work with other nations to address the challenges posed by cryptocurrencies.
The crypto community in India has welcomed the Finance Minister’s statement, which calls for clarity and consistency in crypto regulation. This is a positive move towards a more transparent and collaborative approach, although it’s yet to be seen how India will implement global consensus into actual policy measures.
