The IMF and USA Support India’s Plan for Coordinated Global Crypto Regulation at G20
During the recent G20 meeting, the United States and International Monetary Fund supported India’s plan for global coordination of crypto regulation.
India currently holds the G20 presidency. It has been advocating for a global effort to regulate and reduce the potential risks of the emerging digital asset market.
The country’s finance minister hosted a seminar to allow member states to discuss their concerns about cryptocurrencies and to help them come up with a common framework.
Janet Yellen, U.S. Treasury Secretary, spoke to Reuters at the G20 meeting in Bengaluru. It was crucial to establish a strong regulatory framework, but the United States has not proposed any bans.
We have not suggested banning crypto activities outright, but it is crucial to establish a strong regulatory framework. We are working with other government.”
The IMF was however not so friendly. After co-chairing a meeting between Nirmala Sitharaman, Indian Finance Minister, Kristalina Georgieva, the organization’s managing director, said that crypto ban should be considered.
The Reserve Bank of India has been adamant about its stance on digital assets. They claim that there is no underlying value to the new asset class. Investors and the government have been warned by the central bank against crypto. They cite volatility and potential fraud.
Shaktikanta Das, India’s central bank governor, stated that cryptocurrencies have no intrinsic value and their “value” is merely make-believe. He claimed that cryptos were not worth a tulip and that they aren’t even worth a penny, referring to the famous Dutch tulip mania explosion in the first half of the 20th century.
The Indian government is currently examining the possibility of a law to regulate cryptocurrency despite being urged by the central bank to ban them. The Indian Government stated in July that a global collaboration was required to regulate or ban cryptocurrencies.
India’s Crypto Industry is Taken a Hard Fall by Tax Laws
India’s controversial crypto tax plan, which includes a 30% tax on crypto income and a 1% tax deduction (TDS), at the time of payment for a crypto transfer has adversely affected trading volumes on local cryptocurrency exchanges.
According to an Esya Centre research study, Indian crypto traders are more likely to be based in Delhi, according to the think tank. Moved After the controversial tax policy was implemented, there has been a huge shift in trading volumes from local crypto exchanges to international platforms.
The report stated that $3,055 million in cumulative volume was offshored within six month of the current financial years. It also said that 17 lakh users had switched from crypto exchanges domestically to foreign counterparts during the last year.