The Government is engaging with G-20 countries to build international coordination on policy approach to crypto assets. This was stated by the Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Lok Sabha.

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 prevents regulatory arbitrage and supports harmonised policy standards across jurisdictions. International coordination on crypto assets is required because their borderless nature creates potential for regulatory arbitrage; the Government is engaging G 20 partners to prioritise international collaboration during the Indian Presidency so that domestic legislation or bans can be effective only alongside shared evaluation of risks and benefits, a common taxonomy, and agreed standards.