G20 President India: Crypto ‘standard operating protocol’ talks underway

• India is focusing on the need for crypto during its tenure as G20 President.
• Crypto trading is legal in India as long as the rules are followed.

India is in dialogue with G20 members about the need for a crypto standard operating protocol (SoP), confirmed the Indian Finance Minister Nirmala Sitharaman when asked about broad crypto asset regulation.

Sitharaman said:

“In the G20, we’re raising it and having detailed discussions with members so that a standard operating protocol emerges, which results in a coherent, comprehensive approach where all countries work together in bringing some regulation.”

Sitharaman emphasized that cryptocurrencies are largely unregulated in India right now.

According to the minister, technology drives all mining and crypto transactions. Thus, it is difficult for a single country to effectively govern or regulate cryptocurrency.

There is a growing consensus towards crypto regulation, which is why India is raising the issue at the G20. According to Sitharaman, this will ensure that a SoP is established following the G20 discussions. Moreover, all countries could work cooperatively to bring about regulations, whether they pertain to mining or transactions.

Last month, India’s Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, stated that crypto trading is legal in India as long as traders follow the rules.

India for global consensus on crypto regulation

In 2022, Sitharaman stated that crypto regulation requires international consensus. She emphasized that any legislation for regulation or prohibition could only be effective after extensive international cooperation in assessing risks and benefits and developing common taxonomies and standards.

In response to another question, Pankaj Chaudhary, a Minister of State for Finance, said that the Indian government is working with G20 nations to develop an international framework for regulating crypto assets.

A recent Money Control report mentioned that the contribution of Web 3.0 businesses could add $1.1 trillion to the national GDP by 2032. The report underlined the need to formulate a national policy for the wide adoption of Web 3.0 enterprise in India.