The minister also added that these sectors are relatively new and still evolving
By definition, these sectors are borderless and require significant international collaboration: FM
Finance Minister Sitharaman recently also called on IMF to formulate a globally coordinated approach to regulate crypto assets
Crypto assets and the web3 sector require significant international collaboration for any specific legislation on these sectors to be fully effective, Finance Minister Nirmala Sitharaman on Monday informed Lok Sabha in a written reply.
The minister also added that these sectors are relatively new and still evolving. Currently there are no specific regulations for these sectors, she noted.
“By definition, these sectors are borderless and require significant international collaboration for any specific legislation on these sectors to be fully effective,” she said.
For the formation of regulation in this sector, the government has undertaken necessary consultations with stakeholders from time to time, including with relevant international organisations, the minister added,
“The government is cognizant of the emergence of the technologies related to Web3 and Blockchain and has been taking steps to create awareness and the ecosystem building
around Web3,” she added.
It is pertinent to note that Finance Minister Sitharaman recently called on the International Monetary Fund (IMF) to formulate a globally coordinated approach to regulate crypto assets.
Sitharaman made the comments during a virtual meeting with IMF’s managing director Kristalina Georgieva to discuss the upcoming G20 Finance Ministers and Central Bank Governors meeting scheduled later this month.
This is not the first time that the Indian government has called for a global regulatory framework for crypto assets. Recently, economic affairs secretary Ajay Seth also said that India was closely working with the Financial Stability Board (FSB) to arrive at a consensus on regulating cryptocurrencies during India’s G-20 presidency itself.
The Finance Minister also said that RBI has been cautioning users, holders and traders of Virtual Currencies (VCs) that dealing in VCs is associated with potential economic, financial, operational, legal, customer protection and security related risks.
For a long time now, RBI has taken an oppositional stance on cryptocurrencies and governor Shaktikanta Das has, on multiple occasions, called for a ban on cryptos. The central bank has also been exploring options to ‘possibly prohibit’ unbacked crypto assets or devise a common approach to regulate it.
Besides the crash of FTX, Luna, and Terra, crypto scams such as GainBitcoin, BitConnect and Morris Coin have also raised concerns among government officials and retail investors.
