Indian Finance Minister Nirmala Sitharaman, who is in Washington for an event organized by the International Monetary Fund (IMF) spoke about imposing regulations on the crypto markets on a global scale, citing money laundering and terror funding as the main reasons.
“I think the biggest risk for all countries across the board will be the money laundering aspect and also the aspect of currency being used for financing terror,” she said.
One of the most impressive points about the crypto market is the fact that it is not regulated by anyone, but works on a system called Blockchain. But this is a matter of concern for most countries since cryptocurrencies don’t leave a paper trail and are used for money laundering and funding terrorist activities.
“I think regulation using technology is the only answer. Regulation using technology will have to be so adept, that it has to be not behind the curve, but be sure that it is on the top of it. And that’s not possible if any one country thinks that it can handle it. It has to be across the board,” she added.
She also added that India charges a 30% tax on crypto gains to keep track of the parties engaged in the transactions.
If countries come together to impose regulations, it would defeat one of the USPs of crypto markets. Only time will tell how the countries will act.
Highlight by Aman Agarwal.