Indian Finance Minister Says Crypto Assets Cannot Be Currencies — Expects 'Some Framework Emerging' From G20 Discussion

Indian Finance Minister Nirmala Sitharaman has stated that it is the position of the Indian government that crypto assets cannot be currencies, which are issued by central banks. She clarified that crypto assets can be used for trading, speculation, profit-making, and various other purposes. Moreover, she noted that India has raised the issue of crypto regulation with the G20, expressing confidence that “there will be some framework emerging.”

Indian Finance Minister Reiterates Crypto Stance

Indian Finance Minister Nirmala Sitharaman clarified the government’s stance on crypto at the India Today Conclave 2024 event on Friday.

Responding to a question about whether the Indian government will reassess its position on crypto in light of bitcoin’s price recovery, Sitharaman exclaimed: “Reassess its position? Its position has always been this, that assets created in the name of crypto can be assets for trading, assets for speculation, assets for money making, assets for many other things.”

The finance minister noted: “We hadn’t regulated them then. We haven’t regulated them even now.” She stressed:

But they cannot be currencies is what I’ve always held and that’s the government of India’s position also.

Emphasizing that currencies must be issued by central banks, Sitharaman said crypto is “an asset created for speculation, for trading, or for whatever purpose,” pointing out that “it is still unregulated in India.”

The Indian finance minister continued: “And that is why we thought it fit to raise it in the G20 forum because it is so technology-driven and it will have a bearing on cross-border payments and so on.” She cautioned: “If one country regulates it and others don’t, it’ll be an easy way of moving money, round-tripping, or funding drugs, or even terrorism and so on. So we wanted to create a kind of a framework by taking it to the level of G20.” Sitharaman further shared:

It has been very well received and I’m sure there will be some framework emerging.

What do you think about Indian Finance Minister Nirmala Sitharaman’s statements regarding crypto? Let us know in the comments section below.