IMF: India’s Crypto Regulation Efforts Benefit IMF and US G20 Support

G20 President India’s G20 President’s Aspiration to Regulate Cryptocurrencies Gains Support from Both International Monetary Fund and the United States on Saturday, when the bloc’s financial chiefs wrap up two days of talks.

India has said it wants a collective global effort to address the challenges posed by cryptocurrencies such as Bitcoin and Ministry of Finance said he had held a workshop for G20 member states to discuss how to develop a common structure.

Speaking to Reuters on the sidelines of the G20 meeting in Bangalore, US Treasury Secretary Janet Yellen said it was “extremely important” to create a strong regulatory framework, but added that the United States had not proposed any outright bans.

“We did not propose a complete ban on crypto activities, but it is very important to create a strong regulatory framework,” Yellen said. “We are working with other governments.”

Previously, IMF Managing Director Kristalina Georgieva told reporters after co-chairing a meeting with Indian Finance Minister Nirmala Sitharaman that banning cryptocurrencies should be an option.

The government of Indian Prime Minister Narendra Modi has been discussing the development of a law to regulate or even ban cryptocurrencies for several years, but has not made a final decision. Reserve Bank of India said that cryptocurrencies should be banned as they are akin to a Ponzi scheme.

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On Thursday, the IMF laid out a nine-point action plan for how countries should handle crypto assets, with point number one calling for no legal tender status for cryptocurrencies. Such efforts have become a priority for the authorities following the collapse of a number of cryptocurrency exchanges and assets over the past couple of years, the fund said, adding that doing nothing now is “not practical.”

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