The Government is engaging with G20 countries to build international coordination on policy approach to crypto assets. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Lok Sabha today.

The Minister further stated that the Indian Presidency provides an opportunity to place different priorities, including priority on crypto assets, on the agenda for international collaboration. Crypto Assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards, the Minister stated.

International coordination on crypto assets urged to prevent regulatory arbitrage and harmonise policy approaches during international presidencies. International coordination on the policy approach to crypto assets is necessary to address their borderless nature and to prevent regulatory arbitrage. National legislation-whether regulation or prohibition-will be effective only with substantial international collaboration on evaluating risks and benefits and on developing a common taxonomy and standards.