India’s finance minister emphasizes global cooperation for cryptocurrency regulation By Investing.com

Finance Minister Nirmala Sitharaman of India has stressed the need for global cooperation and a comprehensive framework to address the threats and opportunities posed by cryptocurrencies. The statement came during her address at the Global Fintech Fest in Mumbai on Tuesday. Sitharaman noted that despite efforts to strengthen security defenses, emerging attack vectors continue to pose challenges, and she characterized cryptocurrencies as both a threat and an opportunity.

Cryptocurrency regulation has been a contentious issue in India, with Reserve Bank of India (RBI) Governor Shaktikanta Das repeatedly expressing concerns about the potential risks they pose to financial stability. In March, the finance ministry extended regulatory oversight to include the exchange, transfer, safekeeping, and administration of cryptocurrencies under the Prevention of Money Laundering Act (PMLA).

Sitharaman disclosed that India, during its presidency of the G20, has facilitated discussions on the regulation and understanding of crypto asset-related issues. Active deliberations are ongoing, featuring contributions from institutions such as the International Monetary Fund (IMF), Financial Stability Board (FSB), and Organisation for Economic Co-operation and Development (OECD).

The Finance Minister emphasized the importance of international cooperation in fostering a responsible financial ecosystem. She highlighted the necessity of addressing various threats, including those at physical borders, in cyberspace, and emanating from the crypto sphere.

Sitharaman also urged fintech companies to invest heavily in robust security measures, including advanced encryption and other protective mechanisms, to safeguard financial transactions and user data. She asserted that a secure system is indispensable for cultivating trust and nurturing a thriving financial ecosystem. She emphasized India’s potential to lead efforts in creating an inclusive, resilient, and sustainable financial environment.

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