India Advocates for Global Cryptocurrency Framework at G20 Summit
Luisa Crawford Aug 29, 2023 07:00
India's Prime Minister, Narendra Modi, emphasized the need for international collaboration in creating cryptocurrency guidelines at the G20 summit, aiming to align regulations with global standards, despite the ambiguous regulatory environment.
At the latest Group of 20 (G20) summit, Prime Minister Narendra Modi of India highlighted the need for international collaboration in crafting cryptocurrency guidelines. With India holding the G20 presidency, it is actively pushing for a cohesive global strategy on cryptocurrency governance.
The G20, comprising 19 countries and the European Union, serves as a pillar for the world's dominant and emerging economies. It plays a crucial role in reinforcing international structures and decision-making on key global economic concerns.
In an interaction with a domestic publication, Modi delved into the future of nascent technologies like blockchain and cryptocurrency. He emphasized their potential to influence globally, stressing the need for regulations that transcend national boundaries. Drawing an analogy with the aviation sector, Modi noted that in the same way there are standardized rules for air traffic and security, cryptocurrencies should be governed by global standards.
Modi elaborated on India's contributions to the global crypto dialogue, stating, "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." On August 1, India released a presidency note detailing its perspectives on a global framework for cryptocurrency. This note aligned with guidelines from the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund, while also incorporating additional suggestions tailored to developing economies.
Despite India's push for a global crypto framework, the nation's own regulatory environment for cryptocurrencies remains ambiguous, marked by high taxation and a lack of clarity. In 2022, India introduced a 30% tax on cryptocurrency gains, which resulted in a significant departure of emerging crypto companies and a marked decrease in cryptocurrency trading activity.
The G20's role in international economic cooperation is crucial in addressing and harmonizing regulations for emerging technologies. With India at the helm of the G20 presidency, the country is poised to influence the global conversation on cryptocurrency regulations, emphasizing the importance of a unified approach.
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