The world’s 20 biggest economies are could come together in an effort to jointly regulate cryptocurrencies, following months of high-profile scams that have shaken confidence in this emerging area.
India’s Finance Minister Nirmala Sitharaman told reporters Saturday (Feb. 11) that because of the sophisticated technologies involved in crypto, countries must discuss whether a given regulation is necessary.
“We are talking to all nations, that if it requires regulation, then one country alone cannot do anything,” said Sitharaman, whose comments were reported by Reuters. India will act as this year’s head of the Group of 20 (G20), which is expected to discuss pressing issues related to the Digital Economy. India is set to host finance ministers and central bank governors from the G20 nations later this month, the report said.
Related: UK Looks To Regulate Crypto Like Traditional Finance Firms
Sitharaman’s comments came in the midst of numerous calls for greater regulation and oversight of the crypto sector from all over the world.
For example, Federal Reserve Board Governor Christopher Waller has said banks need to change their approach to crypto customers, adopting the “safe and sound” manner they would use for any other customer.
“As with any customer in any industry, a bank engaging with crypto customers would have to be very clear about the customers’ business models, risk-management systems and corporate governance structures to ensure that the bank is not left holding the bag if there is a crypto meltdown,” Waller said at Global Interdependence Center conference on decentralized finance.
Banks that wish to engage in activities related to cryptocurrency must also consider and comply with their know your customer (KYC) and anti-money laundering (AML) requirements, he added.
In addition, US president Joe Biden has recently put out a roadmap for the crypto sector and urged legislators to move faster in handing down new rules for the industry, urging bipartisan cooperation in the narrowly-divided legislative body.
“Congress needs to step up its efforts,” the roadmap said, with White House officials calling on legislators to “expand regulators’ powers to prevent misuses of customers’ assets.”
