Crypto Regulation Needs a Global Model, Says FM Nirmala Sitharaman

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A “global understanding and model” is needed to regulate cryptocurrency, Union Finance Minister Nirmala Sitharaman said on Sunday.

She was speaking at an interaction program organized by Thinkers Forum, Karnataka.

“No country individually when it comes to technology-driven crypto assets can effectively control it because technology has no borders,” Sitharaman said. “So the very character of being technology-driven requires all countries to be on board. If you were to regulate here and not elsewhere, it wouldn’t be effective,” she said.

Read also | Crypto problem needs immediate attention, says FM Sitharaman

That doesn’t mean India favors “controlling” the technology that drives digital currencies, Sitharaman said. “Distributed ledger technology has its qualities, its potential and its strengths. We keep that in mind,” she said.

According to Sitharaman, platforms such as the G-20, the Organization for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF) and the World Bank have recognized the need for a global effort. “We all have to work together. Otherwise, crypto regulation might not be effective,” she said.

The Minister pointed out that the G-20 under the Indian Presidency has kept digital currencies on its agenda. “In addition, the IMF presented a paper on crypto and how it can affect macroeconomic stability. The Financial Stability Board (FSB) also agreed to present a report. The FSB and IMF reports will be discussed in July when finance ministers and central bank governors meet,” she said. “In September, there will be a summit of PMs and presidents of G-20 countries in India.

Read also | G20 consensus that regulation of crypto assets must be global: FM Nirmala Sitharaman

Sitharaman explained that digital currencies involve “very distributed” technology in which “it is sometimes difficult to establish identity”.

“No plan to regulate finfluencers”

On a question, Sitharaman said there were no proposals to regulate financial influencers or finfluencers. At this point, I don’t have any proposals in front of me to regulate financial influencers. Social influencers and financial influencers are all there. But each of us has to exercise a very strong sense of caution to make sure we double-check, double-check and talk to people, she said, referring to financial advice provided by influencers. .

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