India Seeks to Devise Global Standards for Cryptocurrencies
- India’s Minister of Finance Nirmala Sitharaman has revealed that India is working to develop a framework of global standards for regulating cryptocurrency.
- Sitharaman disclosed that the government is becoming increasingly concerned about cryptocurrency abuse in illegal activity.
- The Finance Minister disclosed that India would prioritize discussion of cryptocurrency regulation during the upcoming G-20 meeting.
- Sitharaman has previously pushed for numerous policies that had profound effects on the crypto sector, such as the introduction of a 30% and 1% TDS tax rate on crypto in India.
Finance Minister of India Nirmala Sitharaman has revealed that the country is working to devise global standards for the regulation of cryptocurrency as she addressed the media during her official visit to the USA.
The Finance Minister disclosed that India would look to advance discussions in this direction once it commences its G20 administration before the end of 2022.
Union Finance Minister Smt. @nsitharaman addresses the media on her official visit to USA from 11th Oct.-16th Oct. 2022, in Washington DC. 07.00 pm EST 15th Oct. 2022Watch live https://t.co/oA7xhtjala pic.twitter.com/cdvbD6Epjj
— Ministry of Finance (@FinMinIndia) October 15, 2022
According to Sitharaman, governments around the world are keen to see cryptocurrency grow. However, there are growing fears among government officials regarding the unlawful usage of cryptocurrency. The Finance Minister divulged that India would prioritize the pursuit of cryptocurrency regulation throughout its G-20 administration.
Calls for the Joint Regulation of Cryptocurrency
The Finance Minister conceded that no single country is capable of regulating the crypto sector, and emphasized the importance of a call for a collective effort in effectively monitoring the industry. Sitharaman also advocates for the proper utilization of cryptocurrency in official capacities.
The Finance Minister emphasized that regulators must ensure that cryptocurrency doesn’t become a medium for money laundering and financing terrorism. She further revealed that India is studying the approach taken towards digital assets by other countries around the world
Sitharaman disclosed that India would look to take important notes from its study of regulations around the globe in order to make a robust submission at the G-20 meeting.
“We want to bring up matters related to cryptocurrency on the table of G20 so members can discuss it and arrive at a framework or SOP, so globally, countries can have a technologically driven regulatory framework,” the Minister underlined.
Drive to Regulate Cryptocurrency
Nirmala Sitharaman is well-known in the cryptocurrency space for her firm approach to all aspects of the industry. Initially, she warned Indians to be cautious about their involvement with cryptocurrency investments following a KuCoin report that an approximate 115 million Indians owned cryptocurrency
The minister has championed numerous policies that have impacted the crypto sector in India, including the introduction of a 30% and 1% TDS tax rate on cryptocurrency in India. The hefty tax rates led to a massive decline in the trading volume of cryptocurrency in India.
The Finance Minister is now reportedly pushing to introduce a CBDC in the form of the digital rupee to rival crypto in the country. Furthermore, during a panel discussion with Director Kristalina Georgieva in April, Sitharaman urged the International Monetary Fund to take a lead role in regulating crypto assets.
On the Flipside
- Despite the Indian government’s support for the global regulation of cryptocurrencies, Royal Bank of India (RBI), the body responsible for the regulatory oversight of the Indian banking system, would see a total ban on crypto imposed.
Why You Should Care
Crypto regulations may seem restrictive at first, but could stand to benefit investors in the long run. The installation of a measured framework could bring about controlled price volatility and the implementation of effective measures to protect investors against hacks.
For more on crypto in India, check out:
Polygon to Power India’s First Blockchain-Based Police Complaint Portal
Indian Government Plans Indirect Tax On Crypto To Control Revenue Loss