Cryptocurrency regulation: FM Sitharaman says there should be a global mechanism

Finance Minister Nirmala Sitharaman on Friday said there should be a global mechanism to monitor technology, whether it is a cryptocurrency, payment systems, or data privacy. Global action is the only way to regulate technology effectively, she said.

"I am not sure if any one country has found a formula to regulate technology," she said speaking at an InFinity Forum, a leadership forum on financial technology. This is the first edition of this summit and was inaugurated by Prime Minister Narendra Modi.

Sitharaman said technology doesn't respect borders and global action is the only way to regulate it effectively. Plus, to regulate well, the regulatory framework has to be constantly evolving and regulators should get some independence of what they can do with the regular progressions.

Speaking about financial inclusion, she said 1 billion Indians have internet connections, 1.2 billion have aadhaar cards, and over 600 million people have smartphones. "India has almost achieved the social objective," she said, adding that it is now moving towards bridging the digital divide. Financial inclusion means availability and equality of opportunities to access financial services.

Her comments come ahead of the much-awaited cryptocurrency bill that will be introduced in the Parliament in the ongoing Winter session. The bill that seeks to ban private cryptocurrencies has been reworked, Sithraman had said earlier on Tuesday, adding that the new bill will be introduced in the Parliament once approved by the Cabinet. She had also clarified there is no proposal to recognise Bitcoin as an official tender in the country.