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G20 Summit: Discussing Crypto Policy Response
By Laxmikant Khanvilkar
Recent Budget proposals has left virtual digital assets (VDA) or cryptocurrency investor wondering about the future of their investment in this high volatile and hard-to-categorise asset class. No mention of word crypto irked many enthusiast while raising doubts over private digital currencies prospect in the country.
However, in a post-budget interaction with the media representative, the Nirmala Sitharaman, Finance Minister, Government of India, cleared her stance with regards to Cryptocurrencies.
In a post budget interaction, Sitharaman explained that India is working towards a global SOP for regulating Crypto assets at G20.
“Regulations can’t be done by one single country it is a collective effort of all the countries,” Sitharaman said.
Industry observers believe that FM, instead of banning Crypto talking about regulating the same is interesting and directionally positive. They welcome the thought of arriving at global consensus with regards to regulating the same. Whether this can be a collective regulation across borders is yet to be known.
Similar views are expressed by officials from the North Block. Ajay Seth, Secretary, Department of Economic Affairs, (Ministry of Finance) Govt of India, during the last week’s media interaction, shed a light on the issue. He has not only cleared doubt over legality of cryptocurrency “Trading” but also the way forward.
“The question of legality will come only if something is considered illegal we are trying to….perhaps we should see it in that manner Crypto Assets are not illegal in this country,” Seth said. So moving forward on what should be the stance how tightly should we regulate it? Are some of the points he raised.
Well, the Secretary’s comments have cleared doubts over legality of crypto trading a high priority issue given its cross border potential.
Meanwhile, for those wanting to know about crypto regulation, he has also informed that a timeline for the same will be set during the upcoming G20 summit in Bengaluru.
“There will be a 135 minute seminar on crypto assets on the policy response, and for that again IMF is preparing to finalizing their paper that would form the base,” Seth added. Deliberation over the regulation process will take place at other forums as well. Meanwhile, the Financial Stability Board has proposed forming a crypto assets working group and will be a part of discussion group. So the global efforts are on to build the consensus around the policy response.
India being at the helm of affairs, is expected to generate awareness among participating countries and achieve a breakthrough in regulating the digital asset.
It seems everything is not lost for crypto enthusiasts. Some ray of hope for crypto enthusiast in that discussion. India will be leading the global consultation on crypto regulation the process which will be supervised under its stewardship and not to forget with lot of deliberation by participating countries and recommended by IMF.
Some suspect once a major country defines a set of regulation, it will most likely be adopted by others with a slight change to fit within the country’s existing financial model.
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