India in its Presidency note on Crypto assets in the Gandhinagar round of the G20 Finance Ministers & Central Bank Governors meet has pushed for a minimal standard of regulation, Economic Affairs Secretary Ajay Seth told CNBC-TV18.
In an exclusive interaction, Seth said, “The building blocks of a good policy are getting into place; we need to follow a minimum level of regulation on cryptos. If countries want more stringent norms they can do so.”
On being asked if this would address the RBI’s concerns on the macroeconomic risks arising out of crypto assets and if they can be banned by individual countries, Seth said, “Every country should have a base level of policies and regulations and protect its financial sector from crypto assets. Countries, especially emerging economies, if they want to be more stringent, can do so.”
RBI has been unequivocal in pushing for an outright ban on cryptocurrencies. “RBI’s position is very clear, all cryptos should be banned. However, the technology of blockchain needs to be supported as it has so many other applications,” RBI Governor Shaktikanta Das has been quoted on several occasions as saying.
Highlighting India’s proactive role in cryptocurrencies on the global stage, Seth said, “India has facilitated very significant work on cryptocurrency. It was India that asked the IMF to come up with a macroeconomic approach to cryptos … There has been a good discussion on how to deal with crypto assets. India also said the synthesis paper of the G20 due in September should focus on a roadmap and the way forward. So, India has given major inputs on this issue.”
Ajay Seth added the Organisation for Economic Cooperation and Development (OECD) has made recommendations on the taxation of crypto assets and the sharing of information. And the Financial Stability Board has given recommendations on backed and unbacked crypto assets as well.
“There is consensus on money laundering, terror financing using crypto assets. A policy and regulation approach to cryptos is being considered,” Seth told CNBC-TV18.
First Published: Jul 20, 2023 5:44 PM IST
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