- Modi stressed global crypto cooperation as G20 president, aiming for a comprehensive regulatory structure.
- G20 unites major economies, fortifies global economic collaboration, and oversees essential international economic matters.
- PM Modi advocates global tech rules, parallels aviation regulations, and highlights India’s active crypto role.
During the yearly Group of 20 (G20) summit, Narendra Modi, the Prime Minister of India, emphasized the importance of international cooperation in developing regulations for cryptocurrencies. In his role as the current G20 president, India is actively leading efforts to promote the establishment of a comprehensive worldwide structure aimed at regulating digital currencies.
Consisting of 19 nations along with the European Union, the G20 represents a coalition of the most significant developed and emerging economies worldwide. This collective plays a vital role in advancing international economic collaboration, contributing significantly to fortifying the global framework and management of crucial matters pertaining to the international economy.
In a conversation with the local newspaper Business Today, PM Modi discussed the influence of emerging technologies like blockchain and cryptocurrency. He underscored that the worldwide repercussions of these emerging technologies are substantial. Consequently, the guidelines, rules, and structure governing them should not be confined to a single nation or a specific group of countries.
Moreover, Modi drew a parallel with the aviation sector, citing its unified regulations for air traffic control and security. He emphasized that similar to these standardized rules, emerging technologies such as cryptocurrency should also be subject to global regulation. Additionally, he highlighted India’s active participation in the ongoing discourse concerning cryptocurrency regulations.
“India’s G20 presidency expanded the crypto conversation beyond financial stability to consider its broader macroeconomic implications, especially for emerging markets and developing economies. Our presidency also hosted enriching seminars and discussions, deepening insights into crypto assets.
Indian Prime minister, narendra modi
On August 1st, India unveiled a presidency document that encompassed its contributions to the worldwide blueprint for cryptocurrency. The recommendations for this crypto framework harmonized with the directives established by the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund. Alongside these suggestions, the document featured supplementary recommendations that specifically targeted the advancement of economies in development.
For a considerable duration, India has been championing the establishment of a worldwide cryptocurrency framework, even though its domestic regulatory landscape for cryptocurrencies remains intricate, uncertain, and burdened by substantial taxation. During her speech at the International Monetary Fund, Indian Finance Minister Nirmala Sitharaman emphasized the necessity of establishing a worldwide framework for cryptocurrencies. This initiative aimed to effectively monitor and curb the potential exploitation of cryptocurrencies for unlawful activities.
In 2022, the Indian Finance Bill 2022, encompassing the revised regulations involving a 30% cryptocurrency tax, received endorsement from the Rajya Sabha, the upper chamber of the Indian parliament.
The introduction of the Finance Bill took place during the parliamentary budget session for 2022-2023 in January. This bill introduced amendments to tax regulations, imposing a 30% tax on digital asset holdings and transfers within the realm of cryptocurrencies. Additionally, traders are now disallowed from offsetting their losses against profits, and each trading pair will be treated independently for the purpose of tax deductions.
The contentious bill underwent examination by experts, traders, and exchange operators. Despite lacking input from crypto stakeholders, the government proceeded with its regressive stance. The crypto community expressed discontent due to the crypto tax model resembling gambling levies, implying the government’s gambling analogy for the crypto market.
