Nirmala Sitharaman urges IMF to develop globally coordinated approach to crypto asset regulations

Finance minister Nirmala Sitharaman on Thursday held a discussion with IMF managing director Kristalina Georgieva and urged the multi-lateral funding agency to develop a globally coordinated approach to the regulation of crypto assets. The finance minister held a virtual conversation with the International Monetary Fund (IMF) MD to discuss the upcoming G20 finance ministers and Central Bank Governors (FMCBG) meeting, scheduled to be held in Bengaluru later this month. Sitharaman also thanked IMF for the support that it had been providing to the G20 Indian presidency on various work streams under the G20 FinanceTrack. The finance ministry in a series of tweets said 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. Both leaders expressed solidarity with those affected by the devastation in Turkey and Syria, the ministry said in a tweet. "FM conveyed India's immediate support extended by Prime Minister Shri @narendramodi through deployment of NDRF @NDRFHQ and medical teams under #OperationDost," as per another tweet.

Coinbase CEO Armstrong decries rumors of possible US SEC ban on crypto staking

Coinbase Global Inc.’s head Brian Armstrong escalated his war of words with the US Securities and Exchange Commission, warning he’d heard rumors the agency wants to ‘get rid of’ crypto staking by retail investors. “I hope that’s not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen,” he tweeted on Wednesday, while arguing that the practice of staking is “a really important innovation.” The SEC declined to comment on Armstrong’s tweets. The agency has repeatedly said that most digital tokens are securities that should be subject to its rules. Chair Gary Gensler has previously indicated staking could fall under the regulator’s purview. Armstrong argued that staking is not a security. Staking involves earning rewards by locking up coins to help order transactions on various blockchains such as Ethereum. Coinbase, Kraken and other crypto exchanges have waded into staking products to diversify revenues. The firms let users stake coins, without needing specialist computer equipment nor having a minimum amount of 32 Ether, and take a cut of the rewards. Staking on Ethereum can earn yields of about 6%. Coinbase has flagged the progress of its staking services to shareholders. Last August, Coinbase disclosed that it’s being probed by the SEC over its staking programs. The exchange is the second-largest depositor of staked Ether, according to tracker Etherscan.