Global consensus essential for crypto assets regulation: FM

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IANS | 23 Apr, 2023
Finance Minister Nirmala Sitharaman on Sunday emphasised on the need for global consensus for regulating crypto assets.

Addressing a series of events in Bengaluru, she said that any kind of regulation on crypto assets would require every nation's consent, otherwise it would not be effective.

Sitharaman added that India under its G20 presidency has kept crypto assets regulation as an agenda item for this year.

The IMF has given a paper on crypto-currency and the way it can affect the macroeconomic stability.

"The Financial Stability Board (FSB), which was set up by G20, has agreed to give a report that will also focus on financial stability," Sitharaman said.

Reports of both FSB and IMF will be discussed in July when Finance Ministers and Central Bank Governors will meet under the G20 umbrella, the Finance Minister said.

Sitharaman further said that the government is taking several measures to widen the tax base.

"We have brought in a parallel, simplified income tax regime with lower tax rates and less exemptions. Changes have been brought to encourage people to pay taxes," she said.

"Salaried class sometimes feel why they are only burdened and not others are questioned. They should remember that the government is approaching others as well, big expenditures are now being taxed, they are paying TDS. So, widening of tax net is happening," she said.

Speaking on the global economic scenario, the Finance Minister said: "Covid was not even completely over when the war in Europe began and it had global repercussions. Fuel prices went up and food insecurity was seen in many countries."

During Covid, many developed economies printed and distributed money. This formula resulted in double-digit inflation in their economies, something which was not seen there in 30-40 years, Sitharaman added.

On inflation, she said that initially interest rates were "low for a long" and now inflation rates are "high for long" in countries which printed money and distributed it during Covid.

"Their economy is in a state of flux and in a recessionary phase which will have spillovers worldwide," Sitharaman said.