India’s finance minister says crypto cannot Be recognized as legal tender

India’s Finance Minister Nirmala Sitharaman, speaking at the India Today Conclave 2024, made clear the government’s position on cryptocurrencies, emphasizing that they cannot be considered as currencies. This statement aligns with the longstanding view that while digital assets can be utilized for purposes such as trading, speculation, and profit-making, they do not meet the criteria to be recognized as official currencies by the government. Sitharaman pointed out that cryptocurrencies remain unregulated in India, highlighting the distinction between them and currencies issued by central banks.

During her address, Sitharaman addressed the speculative nature of cryptocurrencies and the current lack of regulatory oversight in the Indian market. She also expressed concerns over the potential misuse of these digital assets for illegal activities due to the absence of a cohesive regulatory framework. This led to the decision to bring the issue of crypto regulation to the attention of the G20.

The Finance Minister emphasized the importance of a global framework to manage the challenges posed by cryptocurrencies, especially in terms of cross-border transactions and the potential for their misuse in activities like money laundering, terrorism financing, and round-tripping.

Sitharaman revealed that the initiative to discuss crypto regulation at the G20 forum was well received, suggesting optimism for the development of a comprehensive international regulatory framework. The move aims to foster collaboration among the world’s largest economies to address and manage the complexities and risks associated with the use of cryptocurrencies. By doing so, India seeks to ensure that digital assets are used responsibly and within the bounds of law, preventing their exploitation for unlawful purposes while recognizing their role in the modern digital economy.