Global cooperation needed to regulate crypto: Sitharaman tells Parliament

RBI has called cryptocurrencies a 'real danger', listing their risk in its annual report

Cryptocurrencies require international collaboration to "prevent regulatory arbitrage", Finance Minister Nirmala Sitharaman told Lok Sabha on the first day of Parliament’s Monsoon Session. 

The government is seeking international collaboration on regulating cryptocurrencies while the Reserve Bank of India (RBI) has said that it seeks prohibition on such digital assets. 

"...any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” said Sitharaman.

She said that the RBI has suggested banning cryptocurrencies because it believes the assets could endanger the economy.