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India’s inputs important to formulate global policy on cryptocurrencies, says Sitharaman

India’s inputs important to formulate global policy on cryptocurrencies, says Sitharaman
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Gandhinagar: Union Finance Minister Nirmala Sitharaman on Tuesday said various issues surrounding cryptocurrencies were discussed at a key G20 meeting here and India’s inputs will play an important role in formulating a comprehensive global policy for the new-age assets.

She made the comments while addressing the media at the Mahatma Mandir convention centre here in Gujarat after the conclusion of the 3rd meeting of G20 Finance Ministers and Central Bank Governors.

“Members welcomed the high-level recommendation of the Financial Stability Board (FSB) on crypto asset activities. Members also discussed the presidency note that India had prepared, and noted it would be an important input towards prioritising areas of work essential for achieving a comprehensive, cohesive and coordinated global policy and regulatory framework. Several members appreciated India for bringing up this issue,” she said.

While the work of preparation of ‘synthesis paper’ is underway, India has submitted a ‘Presidency Note’ to the G20 membership laying down important inputs for a roadmap on crypto assets, said an official release. The roadmap, to be contained in the synthesis paper, will support a coordinated and comprehensive policy and regulatory framework taking into account the full range of risks related to crypto assets, it said. “Now that discussions on cryptocurrencies are widening, there is a common view that a global understanding is required for regulating crypto assets and their implications on emerging markets and developing economies. There are even small countries which are under the impact of unregulated crypto assets,” said the finance minister when asked about India’s stand on the digital assets.

Asked how cryptos will be regulated under FSB regulations, she said the synthesis report, to be jointly prepared by the IMF and FSB, is expected to come and then a “discussion will take place on the inputs which we have given in the President’s note. Can’t guess now. We have to wait till the next summit.”

Reserve Bank of India (RBI) Governor Shaktikanta Das said early enthusiasm about crypto currencies is fading in many countries.

“There was an early enthusiasm among countries about cryptos. But, during the last one year, there were failures of some large crypto exchanges, and investors also lost money. Enthusiasm has gone now. Everyone has realised that there is a huge risk. So there is (currently) a great amount of caution and concern about crypto currencies,” said Das.

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