Tags in this story
India Has ‘Detailed Discussions’ With G20 Members On Crypto Regulation – Regulation of Bitcoin News
India is in “detailed discussions” with other G20 members to form a collective standard operating procedure (SOP) to regulate crypto-assets, Indian Finance Minister Nirmala Sitharaman has revealed. She also called for “a globally coordinated approach to the regulation of crypto-assets” during her recent meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva.
The G20’s crypto regulation discussion is ongoing
Indian Finance Minister Nirmala Sitharaman answered some questions regarding crypto mining and regulation on Monday in the Lok Sabha, the lower house of India’s parliament.
Noting that cryptocurrencies are largely unregulated in India at the moment, Sitharaman explained, “Whether it’s mining or whether it’s the asset or whether it’s the transaction, we recognize that it’s very, completely almost, driven by technology, and a Independent countries’ efforts to control or regulate it will not be effective.” She added:
There is an evolving consensus, which is why we in the G20 are addressing this issue and having detailed discussions with members so that a standard operating protocol [SOP] emerges after the discussions.
The Group of Twenty (G20) consists of Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, The United States, and the European Union. The G20 members represent around 85% of world GDP, over 75% of world trade and about two-thirds of the world’s population.
The Indian finance minister went on to tell parliament that the aim of the discussions with other G20 members is to have “a coherent, comprehensive approach where all countries work together to bring about some regulation – whether it’s mining, whether it’s transactions – and therefore, all of this is looked at thoroughly.” She stressed:
We are working together to get a collective SOP on it.
Similarly, Sitharaman told reporters on Saturday that the issue of regulation of crypto-assets will be raised at G20 meetings under India’s presidency.
“Crypto is highly technology-led and less human intervention,” the Indian finance minister told PTI. “We are talking to all nations that if regulation has to be framed, one country cannot frame it alone. So we are talking to all to create a standard operating procedure so that it is effective… All of these are part of [the] discussion. The discussion process is ongoing in the G20.”
Sitharaman’s remarks followed her virtual meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva, where she discussed the role of the IMF and other relevant international organizations “to develop a globally coordinated approach to the regulation of crypto-assets,” the Indian financial crisis. the ministry described on Twitter. India’s Finance Secretary Ajay Seth said earlier this month that the Indian government plans to introduce measures around crypto this year.
At the G20 Finance Ministers and Central Bank Governors meeting last October, India’s finance minister called for “an effective tax reporting regime and cross-jurisdictional exchange of information for crypto-assets to combat offshore tax evasion,” India’s finance ministry described at the time.
While India does not have a regulatory framework for crypto, the government taxes crypto income at 30% and has imposed a 1% tax deducted at source (TDS) on crypto transactions.
Earlier this month, Sitharaman presented this year’s Economic Survey to Parliament and highlighted the need for “a common approach to regulating the crypto ecosystem.” This year’s Finance Bill also introduced new crypto tax penalties, including imprisonment for non-payment of crypto TDS.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), has continued to recommend an all-out bet on crypto assets, including bitcoin and ether. RBI Governor Shaktikanta Das has warned that cryptocurrencies are 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 to regulate crypto assets this year? Let us know in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for damages or losses caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
