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Finance Minister Nirmala Sitharaman on Monday said India is discussing with G-20 member countries the need to develop a standard operating protocol (SoP) for regulating crypto assets.

She said crypto assets and Web3 are relatively new and evolving sectors, and require significant international collaboration for any specific legislation on these sectors to be fully effective.

The minister said crypto mining, assets, or transactions are completely driven by technology and a standalone country’s effort in controlling and regulating them will not be effective.

“In the G20, we’re raising it and having detailed discussions with members so that a standard operating protocol emerges, which results in a coherent, comprehensive approach where all countries work together in bringing some regulation,” the minister said during Question Hour in the Lok Sabha.

Sitharaman was replying to a question by DMK MP T Sumathy on whether the government has prepared any roadmap to regulate virtual digital assets /cryptos/Web3 sectors in the country.

In reply to a separate question, Minister of State for Finance Pankaj Chaudhary said the government is engaging with G-20 countries to build international coordination on regulating crypto assets.

He said India’s G-20 presidency provides an opportunity to place different priorities, including crypto assets, on the agenda for international collaboration.

Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage.

Therefore, any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards, Chaudhary said.

“The government is engaging with G-20 countries to build international coordination on policy approach to crypto assets,” Chaudhary said.