Crypto Regulation: Global Effort Needed, Says India’s Finance Minister
- Union Finance Minister Nirmala Sitharaman of India has stated that crypto regulation needs to be a group effort.
- Her comments come in response to the recent collapse of FTX, which highlighted weaknesses in accounting procedures.
- However, many are concerned that global regulation will take a long time and disrupt the freedom of the cryptocurrency space.
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 also noted 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 plans. However, she believes for it to really work, every developed nation needs to step in and take part in a global regulatory initiative.
FTX Collapse Highlights Need For Crypto Regulation
Crypto regulation has become an even more pressing topic ever since the collapse of FTX – now defunct crypto exchange. Many people are 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 its weak accounting procedures which allowed former head executive and founder Sam Bankman-Fried to use customer funds to pay off loans for his other company Alameda Research as well as invest in luxury Bahamian real estate. He is currently awaiting trial at his parents‘ home after being charged with fraud.
Concerns Over Global Crypto Regulation
The problem with global crypto regulation is twofold – it goes against all cryptos stand for by allowing middlemen into the mix and would also take an incredibly long time before it’s implemented on an international scale. Edul Patel – co-founder & CEO at Mudrex – thinks it would take quite some time before laws foster responsible growth & innovation while Rajagopal Menon – VP at Wazir X – adds “With India as president [of G20], we hope they push towards setting up global standards” when referring to potential global regulations coming into effect soonish.