Union Finance Minister Nirmala Sitharaman last Friday said that meetings will be held with finance ministers and central bank governors of G20 countries on the regulation of the cryptocurrency sector. Sitharaman ed that a global standard operating procedure (SOP) is required for regulating cryptocurrency.
Sitharaman was speaking in a post-budget interview with Network18 Group, where she said that the central bank will be recognised as the main authority to issue cryptocurrencies. “Regulation cannot be done by any one country singularly, it has to be a collective action because technology doesn’t group any borders,” she added.
The industry was hoping for some tax relief as well as direction on future regulations of digital assets. “The government has called for global collaboration to establish global standards, which may take time to develop laws that foster responsible growth and innovation,” Edul Patel, co-founder and CEO, Mudrex, a cryptocurrency trading platform told FE Blockchain.
Meanwhile, G20 countries have made numerous changes to cryptocurrency regulations. “With India as the president of the G20, we can set the agenda for regulation which the rest of the world will follow. In general, the fundamental regulatory principles used in the conventional banking industry can be adapted in the cryptocurrency industry,” Rajagopal Menon, vice president, WazirX, a cryptocurrency trading platform, added.
Furthermore, industry experts noted that the Indian government might focus on making the digital rupee more strong. “Central government can keep digital rupee in the forefront leading to increase awareness regarding blockchain and cryptocurrency among masses,” Rajat Hongal, co-founder and chief technology officer (CTO), DayFi, a financial utilities company, added.
Earlier in the Economic Survey report, the cryptocurrency industry was mentioned highlighting the industry’s inherent risks, high volatility, and the need for a global approach to regulation.