India Aims for Comprehensive Crypto Regulation through G20’s Standard Operating Protocol

India’s Finance Minister, Nirmala Sitharaman, has stated that standalone efforts by countries to regulate cryptocurrencies are unlikely to be effective as the technology behind them is highly advanced. She spoke on the matter in the Loksabha and emphasized that in the G20 meeting, this matter will be discussed and will bring a standard operating protocol on crypto assets that would result in a comprehensive approach to regulation with all countries working together.

RBI’s stand on Cryptocurrency

The Reserve Bank of India (RBI) has previously called for an outright ban on cryptocurrencies, citing the risks they pose to the economy. The government, however, has yet to come to a decision on the matter. Sitharaman’s comments are significant as there have been speculations of stringent crypto regulation in India.

In January 2023, RBI Governor, Shaktikanta Das, reiterated his stance on an outright ban on cryptocurrencies, calling them nothing but gambling with no underlying value.

Despite the RBI’s stance, the Supreme Court of India stated that the business of dealing in virtual currencies should be treated as a legitimate trade protected by the fundamental right to carry out any occupation, trade or business under Article 19(1)(g) of the Constitution.

Wazirx CEO welcomes the move

The CEO of WazirX, Nischal Shetty, has expressed his support for India’s proposal of a global regulatory framework for cryptocurrencies, given their decentralized nature.

Overall, the comments from the Finance Minister and the discussions in the G20 suggest that India is taking a step forward in creating a coherent and comprehensive approach to the regulation of cryptocurrencies.