India plans to discuss crypto regulations during its G20 presidency with member countries. Finance Minister Nirmala Sitharaman has revealed that the Indian government hopes to come up with a framework or standard operating procedure (SOP) so that countries around the world “can have a technology-driven regulatory framework” for cryptocurrencies.
India to Discuss Cryptocurrency Regulatory Framework with G20 Member Countries
Indian Finance Minister Nirmala Sitharaman shared the government’s plan regarding crypto regulation on Saturday before concluding her trip to Washington, DC, to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank, PTI reported.
The finance minister told a group of Indian reporters that crypto will be part of India’s agenda during its G20 presidency. Noting that various organizations are doing their own research on cryptocurrencies, he said:
We would definitely like to collect all of this and study a little bit and then bring it to the G20 table so that members can discuss it and hopefully come up with a framework or SOP, so that countries globally can have a technology. regulatory framework promoted.
“But implicit in this is that we don’t want the technology to be disrupted,” Sitharaman stressed. “We want the technology to survive and also be in a position where fintech and other sectors benefit from it.”
The finance minister then made reference to the Enforcement Directorate (ED) detecting money laundering activity involving crypto assets and crypto trading platforms in India.
“This concern has actually been acknowledged by various G20 members saying yes, money trail, yes money laundering, yes drug abuse, and so on,” Sitharaman continued, concluding:
There is an understanding that we need to have some form of regulation, and that all countries will have to be faithful together on this. No country is going to be able to handle it in a singular way. So, in that we will certainly have something.
The G20 is an intergovernmental forum of the world’s major developed and developing economies. The member countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union. . (EU). India will assume the presidency of the G20 for one year, from December 1 to November 30, 2023.
After sitting on a cryptocurrency bill for several years, the Indian government is reportedly working to finalize its stance on the legality of cryptocurrencies by the first quarter of next year in order to comply with the Financial Action Task Force. (FATF). Last month, the finance minister urged the IMF to take a leading role in regulating cryptocurrencies. The IMF said that it is ready to work with India on crypto regulation.
While India has yet to establish a regulatory framework for cryptocurrencies, the country is already taxing cryptocurrency income at 30%, in addition to applying a 1% tax deducted at source (TDS) on cryptocurrency transactions. Additionally, the Ministry of Finance is reportedly working on how the Goods and Services Tax (GST) could be applied to cryptocurrencies.
Meanwhile, the Reserve Bank of India (RBI) continues to have “serious concerns” about cryptocurrencies. The central bank has repeatedly recommended an outright ban on all non-government-issued cryptocurrencies, including bitcoin and ether. However, the finance minister said in July: “Any legislation to regulate or ban can be effective only after significant international collaboration on the assessment of risks and benefits and the evolution of common taxonomy and standards.”
What do you think of the comments of the Indian finance minister? Do you think India will finally have a regulatory framework for cryptocurrencies? Let us know in the comments section.
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