India Having ‘Detailed Discussions’ With G20 Members on Crypto Regulation
India is in “detailed discussions” with other G20 members on the formation of a collective standard operating procedure (SOP) to regulate crypto assets, Indian Finance Minister Nirmala Sitharaman said. She also called for a “globally coordinated approach to regulating crypto assets” during her recent meeting with Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva.
The G20 is discussing the regulation of cryptocurrencies
Indian Finance Minister Nirmala Sitharaman answered some questions regarding cryptocurrency mining and regulation on Monday at the Lok Sabha, the lower house of the Indian Parliament.
Noting that cryptocurrencies are currently largely unregulated in India, Sitharaman explained, “Whether it is mining, an asset or a transaction, we recognize that it is almost entirely driven by technology and an individual country’s efforts to control or regulate will not be effective.” She added:
There is an evolving consensus, and so in the G20 we are raising this issue and having detailed discussions with members to ensure that the standard operating protocol [SOP] arises after discussion.
The Group of Twenty (G20) includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, USA. , and the European Union. G20 members represent about 85% of global GDP, over 75% of world trade, and about two-thirds of the world’s population.
India’s Finance Minister further told Parliament that the aim of the talks with other G20 members is to come up with “a coherent, comprehensive approach where all countries work together to introduce some kind of regulation – be it mining, be it transactions – and therefore all it’s being discussed.” looked at it from all angles.” She emphasized:
We are working together to get a collective SOP on this issue.
Sitharaman also told reporters on Saturday that the issue of regulating crypto assets will be addressed at the G20 meetings chaired by India.
“Cryptocurrency is heavily dependent on technology and less human intervention,” PTI quotes India’s Finance Minister. “We appeal to all countries that if regulation needs to be developed, then one country cannot develop it alone. Therefore, we call on everyone to form a standard operating procedure so that it is effective … All this is part of [the] discussion. The discussion process is underway in the G20.”
Sitharaman’s statements follow her virtual meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday, in which she discussed the role of the IMF and other relevant international organizations “in developing a globally coordinated approach to regulating crypto assets.” The ministry announced this on Twitter. Indian Economy Minister Ajay Seth said earlier this month that the Indian government plans to introduce measures on crypto this year.
At a meeting of G20 finance ministers and central bank governors last October, India’s finance minister “called for an effective tax reporting regime and exchange of information between jurisdictions on crypto assets to combat offshore tax evasion,” as the Indian finance ministry then described.
While there is no regulatory framework for cryptocurrencies in India, the government taxes crypto income at a rate of 30% and has introduced a 1% withholding tax (TDS) on crypto transactions.
Earlier this month, Sitharaman presented this year’s Economic Review to Parliament, emphasizing the need for a “common approach to regulating the crypto ecosystem.” This year’s finance bill also introduced new penalties for crypto taxes, including jail time for not paying crypto TDS.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), continues to recommend a full turnaround of crypto assets, including bitcoin and ether. RBI Governor Shaktikanta Das warned that cryptocurrencies pose a risk to the country’s financial system and will cause the next financial crisis if they are not banned.
Do you think India and the G20 will come up with a collective standard operating procedure for regulating crypto assets this year? Let us know in the comments below.
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