India Warns of Crypto’s Potential to Destabilize Global Economy

• India proposes collaboration to establish a shared framework for regulation.
• G20 officials stress the importance of financial stability and consumer protection.

India’s Finance Minister, Nirmala Sitharaman, raised concerns about the potential for crypto assets to cause “macroeconomic instability” at a press conference after her meeting with the G20 finance ministers and central bank governors.

Speaking at the conference, Sitharaman emphasized:

“There is a greater acceptance among all G20 members that any action on crypto assets has to be globalIt’s not possible for a standalone country to deal with crypto assets independently.”

India Takes Lead in Crypto Regulation

The Finance Minister’s comments come amid increasing global scrutiny of the cryptocurrency industry as governments and regulators seek to balance innovation with investor protection and financial stability.

Earlier, Nirmala Sitharaman proposed that the G20 countries should collaborate to establish a shared framework to control the cryptocurrency industry in response to the growing number of crypto collapses. The Indian prime minister proposed this suggestion during her visit to the United States.

The finance minister’s remarks were echoed by other G20 officials, with many stressing the importance of promoting financial stability and protecting consumers in the rapidly evolving digital economy.

On April 10, the minister announced that India is collaborating with the G20 nations to develop a comprehensive global policy framework for regulating crypto assets. India intends to take the lead in initiating discussions on the Financial Stability Board’s paper on crypto regulation during the upcoming July meetings. This highlights India’s firm commitment to actively participate in shaping the future of the crypto industry and promoting financial stability on a global level.

Recently, the G20 nations have agreed to create a unified framework to promote the adoption and regulation of cryptocurrencies within the G20 block. Finance Minister Sitharaman has stated that the group has proactively responded to this issue. During its G20 presidency, India will take up a “synthesis paper” addressing matters related to crypto assets.