The Indian Finance Minister and the US Treasury Secretary believe high standards are necessary to regulate cryptocurrencies globally. Yellen called for international collaboration to manage the crypto market, saying that some exchanges do not protect their investors.
Nirmala Sitharaman, the Indian finance minister, and Janet Yellen, the US Treasury secretary, recently discussed cryptocurrency regulation. During the ninth US-India Economic and Financial Association meeting in New Delhi, they said international cooperation and high regulatory standards were necessary worldwide.
Jerome Powell, the chairman of the US Federal Reserve (Fed), and Shaktikanta Das, the governor of the Reserve Bank of India (RBI), also attended the meeting. It is the first time Yellen has visited India since she took office as the US treasury secretary.
At the end of the meeting, Yellen and Sitharaman stated that the United States and India look forward to further discussions on financial regulation. They consider it necessary to address emerging issues and priority areas like the digital asset market.
Yellen Considers It Necessary to Protect Cryptocurrency Users
After that, Yellen participated in a roundtable discussion on business and economic opportunities alongside prominent business leaders and economists from both countries.
The US Treasury Secretary called for international collaboration to handle the cryptocurrency issue. She said it is necessary to address some problems of inadequate consumer and investor protection in the crypto market.
Yellen explained that they discussed that area in the meetings, highlighting that international cooperation is crucial. She believes that public authorities, the private sector and public stakeholders need high regulatory standards.
In addition, Yellen commented that it is necessary to reduce the cost of cross-border payments, for which she has worked with various organizations. She said she had discussed the risks and some benefits of cryptocurrencies with the Financial Action Task Force (FATF) and the IMF, among others.
The US Treasury secretary noted that the Biden administration has focused on cryptocurrency regulation. She said that they had come a long way on the issues of illicit funding through cryptocurrencies. However, she considers that they still have a long way to go.
Sitharaman Considers There Should Be a Global Cryptocurrency Regulatory Framework
The Indian Finance Minister has also called for international cooperation to oversee cryptocurrencies. In September, she urged the International Monetary Fund (IMF) to lead the regulation of the crypto market.
Since India has no cryptocurrency regulations, Sitharaman said the Indian government would discuss the issue during its G20 presidency. They would seek to establish a technology-driven regulatory framework for digital assets.
According to reports, the Indian government plans to express its position on the legality of cryptocurrencies. They seek to do that during the first quarter of 2023 and thus comply with the Financial Action Task Force (FATF).
The use of cryptocurrencies has become increasingly evident in the global economic system. That has led regulators in many countries to seek ways to regulate and even ban them. They allege that those assets contribute to illicit activities such as money laundering and terrorism financing.
By Alexander Salazar