Law on cryptocurrency only after international collaboration, risk evaluation: Govt

The policy related to crypto assets and its ecosystem is with the Finance Ministry and any legislation on it would be effective only through international collaboration after proper risk evaluation, the Parliament was told on Friday.

"Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation on the subject can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards," Minister of State for Finance Pankaj Chaudhary told the Lok Sabha in a written reply.

He was responding to a question from BJD member Bhartruhari Mahtab on the current status of the cryptocurrency bill, which was due to be tabled during the 2021 Winter session of the Parliament and by when would it be tabled and opened for public inputs.

Mahtab had also sought to know which department would regulate cryptocurrency and crypto token and regulate other virtual digital assets other than cryptocurrency such as NFT and decentralised applications. - IANS