Finance Minister Urges IMF On Crypto RegulationKristalina Georgieva congratulated India on its strong economic performance in challenging global times and its role at the forefront of digitalisation of the economy, especially in the area of digital payments

Finance minister Nirmala Sitharaman, on Thursday, held a discussion with International Monetary Fund (IMF) managing director Kristalina Georgeiva and urged the multilateral funding agency to develop a globally coordinated approach to the regulation of crypto assets, according to a PTI report.

The Finance Minister held a virtual conversation with the International Monetary Fund MD to discuss the upcoming G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, scheduled to be held in Bengaluru later this month, as per the report.

Last week, finance minister Nirmala Sitharaman had said that meetings will be held with finance ministers and central bank governors of G20 countries on the regulation of the cryptocurrency sector. In a post-Budget analysis with Network18 Group's MD Rahul Joshi, the finance minister had also said that the central bank will be recognized as the authority to issue cryptocurrencies.

As per reports, the Economic Survey released on January 31 had highlighted the need for a common approach for the regulation of cryptocurrency, adding the underlying risks and high volatility of the sector. On the backdrop of this, some of the industry players expected to get clarity on crypto at this year's G20 Presidency.

While sharing the optimistic viewpoints about the crypto sector regulation, Avinash Shekhar, founder and CEO of TaxNodes, told Entrepreneur India that, "Though there is no mention of crypto taxation in the Union Budget, this year's economic survey indicated the importance of a robust Web3 ecosystem and transparent regulation. Startups like ours are going to play an active role in promoting safety and stability in the crypto space."

The Finance Ministry in a series oftweetssaid Kristalina Georgieva congratulated India on its strong economic performance in challenging global times and its role at the forefront of digitalisation of the economy, especially in the area of digital payments.

Furthermore the tweets also added that when both FM and MD expressed the solidarity of those affected by the devastation in Turkey and Syria, Sitharaman conveyed India's immediate support extended by the Prime Minister through deployment of NDRF and medical teams under 'Operation Dost'. Also, during the discussion via video conference, both the leaders recognised that the voices of the most vulnerable and under-represented need to be heard through the leadership of the G20 nations.

In addition, Sitharaman also informed Georgieva that debt issues will be at the forefront of G20 FinanceTrack discussions, and India will continue to support the ongoing efforts for orderly and timely implementation of the Common Framework. Along with addressing debt vulnerabilities, both leaders also discussed other key deliverables, such as the timely completion of the 16th General Review of Quota (GRQ) to strengthen the Global Financial Safety Net, the finance ministry further tweeted.