Finance Minister Nirmala Sitharaman on Monday said crypto assets and web3 sectors require significant international collaboration for effective implementation of domestic legislations. She said these are relatively new and still evolving sectors, with no specific regulations. “By definition, these sectors are borderless and require significant international collaboration for any specific legislation on these sectors to be fully effective,” Sitharaman said in a written reply in the Lok Sabha.
The minister was replying to a question by DMK MP T Sumathy on whether the government has prepared any future roadmap to regulate virtual digital assets / cryptos/web3 sectors in the country. In reply to a separate question, Minister of State for Finance Pankaj Chaudhary said the government is engaging with G-20 countries to build international coordination on regulating crypto assets.
He said India’s G-20 presidency provides an opportunity to place different priorities, including crypto assets, on the agenda for international collaboration. Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage.
Therefore, any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards, Chaudhary said. “The Government is engaging with G-20 countries to build international coordination on policy approach to crypto assets,” Chaudhary said.