IMF and US support India to regulate cryptocurrencies

The Asian giant, which is chairing the G20 this year, is trying to move the issue forward

India’s push to chair the G20 to regulate cryptocurrencies has received support from both the International Monetary Fund and the United States.

India has said it wants a joint global effort to tackle problems caused by cryptocurrencies like bitcoin.

In this regard, US Treasury Secretary Janet Yellen said establishing a strong regulatory framework was “critical” but added that her country was not recommending any kind of ban.

“We are not advocating a complete ban on crypto activities, but establishing a strong regulatory framework is essential. We are working with other governments,” he added.

On the other hand, the director of the IMF, Kristalina Georgieva, opined that banning cryptocurrencies should be an option.

For years, Indian Prime Minister Narendra Modi’s government has been debating legislation to regulate or ban cryptocurrencies, but has not made a final decision. Cryptocurrencies are similar to Ponzi schemes and should be banned.

For its part, last Thursday the IMF issued a nine-point action plan on how countries should treat crypto assets, the first point of which was a call not to grant legal tender status to cryptocurrencies.

According to the fund, following the collapse of many crypto exchanges and assets, “doing nothing is unsustainable.”