India’s Finance Minister Nirmala Sitharaman Clarifies Government’s Stand on Cryptocurrencies at India Today Conclave 2024
India’s Finance Minister, Nirmala Sitharaman, made it clear during her speech at the India Today Conclave 2024 that cryptocurrencies cannot be regarded as currencies by the Indian government. This stance conforms to the long-held view that although digital assets can serve purposes like trading, speculation, and profit-making, they do not fulfill the necessary criteria to be recognized as legal tender by the government.
Addressing the Speculative Nature of Cryptocurrencies and Lack of Regulatory Oversight
While addressing the speculative nature of cryptocurrencies, Sitharaman also raised concerns over the current absence of regulatory oversight in India’s market. She acknowledged the potential misuse of these digital assets for illicit activities due to the lack of a well-defined regulatory framework, leading her to bring up the topic of crypto regulation at the G20 forum.
Importance of a Global Framework for Managing Cryptocurrency Challenges
During her speech, Sitharaman emphasized the significance of a global regulatory framework to manage the challenges posed by cryptocurrencies, particularly concerning cross-border transactions and the potential misuse in activities like money laundering, terrorism financing, and round-tripping.
Optimism for Developing a Comprehensive International Regulatory Framework
Sitharaman revealed that the initiative to discuss crypto regulation at the G20 forum was met with positivity, indicating a sense of optimism for the development of a comprehensive international regulatory framework. This move signifies India’s aim to foster collaboration among the world’s largest economies to address and manage the complexities and risks associated with the use of cryptocurrencies. By doing so, India hopes that digital assets will be used responsibly within the legal framework, thereby preventing their exploitation for unlawful purposes while recognizing their role in the modern digital economy.
