Nirmala Sitharaman: Crypto Regulation Must Be a Group Effort
Union Finance Minister Nirmala Sitharaman of India commented that crypto regulation has become a major priority for several finance ministers and central bank governors of G20 countries. She commented that during this year’s summit, crypto regulation is likely to be a hot topic that many of them will discuss.
Nirmala Sitharaman: Crypto Regulation Must Be Enforced By All Nations
Sitharaman also commented that crypto regulation will likely have to be a group effort. There are many countries out there (such as the United States and the United Kingdom) that are working to implement their own crypto regulation plans, and while this is all fine and dandy and a potentially positive step forward in her mind, she thinks that for crypto regulation to really work and be secure, every developed nation needs to step in and take part in a global regulatory initiative.
In a recent interview, Sitharaman commented:
Regulation cannot be done by any one country singularly. It [must] be a collective action because technology doesn’t group any borders.
Crypto regulation has become a major subject ever since the collapse of the now defunct crypto exchange FTX. There are many people out there that have become increasingly worried about what happened and claim that if such a fall could occur with FTX, then virtually no crypto company is safe.
One of the big issues with FTX was the idea that it had very weak accounting procedures. This allowed the former head executive and founder of the exchange Sam Bankman-Fried to use customer funds to pay off loans for his other company Alameda Research and to invest in luxury Bahamian real estate. Today, he’s awaiting trial at his parents’ home after being charged with fraud.
The problem with crypto regulation, however, is that it goes against all crypto stands for and thus allows middlemen into the mix. Edul Patel – co-founder and CEO of Mudrex, a crypto trading platform – says he thinks that if global regulation of the crypto space were to come about, it would likely take a very long time. He mentioned in a statement:
The government has called for global collaboration to establish global standards, which may take time to develop laws that foster responsible growth and innovation.
Rajagopal Menon – the vice president of crypto trading company Wazir X – also threw his two cents into the mix, mentioning:
With India as the president of the G20, we can set the agenda for regulation which the rest of the world will follow. In general, the fundamental regulatory principles used in the conventional banking industry can be adapted in the cryptocurrency industry.
What Do Others Think?
Finally, Rajat Hongal – co-founder and chief technology officer (CTO) of Day Fi, a financial utilities firm – said:
Central government can keep [the] digital rupee in the forefront leading to increased awareness regarding blockchain and cryptocurrency among [the] masses.
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