India is planning to create standard operating procedures (SOPs) for cryptocurrencies during its G20 presidency. Which runs from December 1, 2022, to November 30, 2023. This news was made public by Nirmala Sitharaman, the country's finance minister itself.
G20 is an intergovernmental organization that includes European Union and 19 other nations. It aims to overcome important global economic concerns like international financial stability, reducing greenhouse gas emissions, and sustainable development.
Before wrapping up her trip to Washington, DC to attend the annual meetings of the International Monetary Fund and the World Bank, Sitharaman told a group of Indian reporters on Saturday that crypto will also be part of India's agenda during G-20 leadership.
India with its Presidency is planning to host over 200 G20 in overall India. Over 200 G20 meetings are anticipated to be held in India during its Presidency, starting in December 2022. The Finance minister said, "We would definitely want to collect all the information first before presenting it in front of all the members at the G-20.
So that it gets easier to discuss and build a framework for the SOP. So that all the countries can have a framework that is technologically driven altogether. The minister noted that institutions affiliated with the G-20. Such as the World Bank, or any organization are conducting their own assessments and studies of issues related to cryptocurrencies or crypto assets.
Statement on G20 presidency
Sitharaman has previously asked for international cooperation to decide on the future of cryptocurrencies. And has been cautious of the widespread use of cryptocurrencies, pointing to threats to financial stability. On October 15, she stated, "That crypto will also be part of India's agenda during the G20 presidency" while addressing local Indian reporters. No nation can manage or control cryptocurrency successfully on its own, claims Sitharaman, she also further added that:
"But are we in a position to determine for what purpose it's being used if it's a question of platforms, trading of generated assets, buying and selling creating profits, and, more significantly in all, these countries are in a position to grasp the money trade?”
Sitharaman also brought up the Enforcement Directorate in her speech, which is an Indian law enforcement organization. And discovered the use of cryptocurrency assets in money laundering cases. She continued by saying that the G20 members shared the same worries and emphasized the importance of having all nations participate in the effective regulation of crypto assets.
It is acknowledged that some sort of regulation is required and that all nations must work together to achieve it; no one nation will be able to do so on its own. So, Sitharaman responded, we will undoubtedly have something on that.
Indian government changing its perception of Crypto
In the month of July, the Reserve Bank of India (RBI) expressed its serious worries about cryptocurrencies. Suggesting that they should be banned because they may have a destabilizing impact on monetary and fiscal stability. At that time Sitharaman wrote a reply to the Lok Sabha stating that with the concerns shown by the RBI on the unstable properties of cryptocurrency. Hence the RBI recommends the prohibition of cryptocurrency in the country.
She even added that according to RBI, cryptocurrencies can't be considered currency because a currency has to be issued by the government or the central bank.
But things are changing as just a few days ago on 7 October the government announced the launch of India’s own CBDC “E-Rupee” and now the discussion of the SOP is going on. The idea of the E-Rupee was there for a few months now. Finally, the government succeeded in completing that, and soon it will available for use. With such good progress, we can expect crypto regulation in India sooner than expected.
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