Under India’s Group of 20 (G20) presidency, the country is finally gearing up to provide the much-anticipated clarity around crypto regulation. As India prepares to preside over the upcoming G20 summit for the first time, the regulation of cryptocurrencies is poised to be a significant focal point.
Ahead of the gathering of the world’s most influential nations scheduled for later this week, India’s Minister of Finance, Nirmala Sitharaman, confirmed that discussions are in progress among G20 members to develop a comprehensive global cryptocurrency framework.
‘Active Discussions are Happening’
In a breakthrough this February, as the G20 president, India’s efforts to set up regulatory frameworks for the asset class garnered backing from both the International Monetary Fund and the United States.
During this period, Sitharaman and US Treasury Secretary Janet Yellen held discussions on strengthening the capabilities of multilateral development banks, addressing global debt vulnerabilities, as well as matters related to crypto assets on the sidelines of the G20 finance chiefs meeting.
More recently, in an announcement made during the Global Fintech Fest on September 5th, Sitharaman said that ‘active discussions are happening’ with regard to crypto regulation in the country.
“India’s (G20) presidency has put on the table key issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets.”
The finance minister highlighted that “content-rich papers” from organizations such as the IMF, FSB, and OECD are currently under consideration, covering a range of topics. She also confirmed that both the IMF and the FSB have submitted synthesis papers regarding crypto.
Sitharaman emphasized that cryptocurrencies represent both a potential threat and an opportunity. The minister underscored the importance of international collaboration in designing a responsible financial ecosystem capable of effectively overseeing cryptocurrencies on a global scale.
Indian Crypto Ecosystem
The Reserve Bank of India consistently advocated for the prohibition of cryptocurrencies, even comparing them to Ponzi schemes. Despite the government’s hostile stance, the adoption in India is on the rise, and a recent report suggests that the country could have more than 156 million users by the end of 2023.
Moreover, several prominent industry players have been eyeing the burgeoning market for quite some time.
Winklevoss twins-led cryptocurrency exchange Gemini announced plans to establish a new engineering hub in Gurgaon, marking the company’s second Asian venue. The world’s largest asset manager BlackRock is set to launch digital asset management services in partnership with Jio Financial Services (JFS).