Sitharaman Pitches For A Global Framework To Regulate Crypto Platforms

Union finance minister said regulation using technology is the only solution

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"Money laundering and terror financing are the biggest concerns around crypto currency," Indian finance minister Nirmala Sitharaman said while speaking at a seminar on Monday of the International Monetary Fund (IMF). Sitharaman is on an official visit to attend the spring meetings of the IMF and the World Bank.

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"I think the regulation using technology is the only solution. Regulation using technology will have to be so adept that it has to be not behind the curve, but be sure that it is on the top of it. And that is not possible if any one country thinks that it can handle it. It has to be across the board," the minister said.

She added that India has introduced a 30 per cent tax on crypto currency to keep a track on the transactions held in these assets. Meanwhile, the Reserve Bank of India has repeatedly underlined its strong views against crypto currencies, saying it causes a serious threat to the macroeconomic and financial stability of the country.

"We are at the crossroads around how fast, how far and in what proportion but I see this as a one-way street in which digital money is going to play a bigger role," said Kristalina Georgieva, managing director, IMF, in her opening remarks of the seminar.

Sitharaman highlighted India's performance in the digital world and the government's efforts to build the virtual infrastructure, stressing the increase of the digital adoption rate in India during the Covid-19 pandemic. According to a survey, 51 per cent of respondents in India have increased their use of digital technologies and data solutions since the outbreak of the pandemic.