Global Consensus Require For Crypto Assets Regulation: Finance Minister

India’s FM Sitharaman has called for global consensus to regulate crypto assets. She said that each regulation requires the consent of every country to be effective.

India’s Finance Minister Nirmala Sitharaman has stated that global consensus is necessary to regulate crypto assets effectively. 

Speaking at an event in Bengaluru, Sitharaman stated that India had included crypto assets regulation on its agenda for this year as part of its G20 presidency. 

Both the IMF and the Financial Stability Board (FSB) have given papers on crypto assets regulation and their impact on macroeconomic stability. 

Reports from the IMF and FSB will be discussed in July when finance ministers and central bank governors meet under the G20 umbrella.

Sitharaman also discussed measures being taken by the Indian government to expand the tax base. She stated that the government had introduced a simplified income tax regime with lower tax rates and fewer exemptions to encourage people to pay taxes. 

The Finance Minister also clarified that the government is targeting big expenditures for taxation, and not just the salaried class.

On the global economic scenario, Sitharaman spoke about the impact of COVID-19 on the global economy. 

She highlighted that the war in Europe began even before the pandemic was over, leading to global repercussions such as rising fuel prices and food insecurity in many countries. 

Sitharaman noted that many developed economies had printed and distributed money during COVID-19, leading to double-digit inflation in their economies. 

She added that initially, interest rates were low for a long period, and now inflation rates are high for an extended period in countries that printed money during the pandemic. 

As a result, their economies are in a state of flux and in a recessionary phase, with spillover effects worldwide.

The Finance Minister Niramala Sitharaman emphasized the need for global consensus on crypto assets regulation and for governments to take measures to expand their tax bases. 

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She also highlighted the importance of economic stability in light of the COVID-19 pandemic and its impact on the global economy.