The proliferation of crypto currencies such as the Bitcoin is a manifestation of rapid technological changes that know no borders, necessitating a co-ordinated global effort as regulators are only playing “catching-up” with such technologies, finance minister Nirmala Sitharaman said here on Friday.
Sitharaman said there was no one point formula for regulating such ever-evolving technology. Her comments, at at a global financial technology event, come against the backdrop of the government preparing to come out with legislation to regulate cryptocurrencies.
“Even as we are thinking about at a national level, there should simultaneously be a global mechanism through which we are constantly monitoring the movement of technology, so that whether it is your cryptocurrency,whether it is tech-driven payment system, data privacy, whether it is ensuring that data is used ethically...when you are looking at data as one of the revenue generating options, to regulate it will have to be a collective effort,” the FM said.
She said technology respects no physical borders and has the power to sweep through borders.
“It means that global action is the only way with which you can regulate effectively.”
Replying to a question on how regulation keeps pace with technology, the finance minister said since these are evolving areas, there is no clear pointed answer.
“ So as long the executive and legislature are only catching up, you will never be on top of it. And with technology, I am not sure they (regulators) can ever be on top of this kind of situation, because it is ever changing and ever evolving,” Sitharaman said.
Mukesh backs bills
Reliance Industries chairman and MD Mukesh Ambani backed the proposed data privacy and cryptocurrency bills, saying India is putting in place the most forward-looking policies and regulations.
Ambani,said nations have the right to build and protect their strategic digital infrastructure.
Stating that data is the ‘new oil’, he said every citizen’s right to privacy has to be safeguarded.