G20: A Premier Forum for Economic Cooperation
The G20 stands as the paramount forum for international economic cooperation. It plays a pivotal role in bolstering global architecture and governance on significant international economic matters. With India currently holding its Presidency, the nation has been vocal about introducing vital changes to the global crypto framework.
India Advocates for Global Cryptocurrency Collaboration
In a recent interview with a local daily, Indian Prime Minister Narendra Modi shed light on the significance of emerging technologies, including blockchain and cryptocurrency. Stressing their global impact, Modi emphasized that no single country or a conglomerate of countries should hold the reins of regulations surrounding these technologies.
Drawing parallels to the aviation industry, Modi remarked that just as there exist universal protocols for air traffic control and air security, there should be a global consensus around rules for cryptocurrencies. Elaborating on India’s stance, Modi stated:
“India’s G20 presidency expanded the crypto conversation beyond financial stability to reflect on its wider macroeconomic consequences, especially for the emerging and developing economies. Our presidency played host to profound seminars and dialogues, delving deeper into the world of crypto assets.”
India’s Suggestions on Global Cryptocurrency Framework
India, during its G20 presidency, rolled out a detailed note that incorporated its recommendations on the global framework for cryptocurrency. The proposed framework resonated with the guidelines chalked out by the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the International Monetary Fund (IMF). The note also encapsulated additional insights prioritizing the needs of developing economies.
Domestic Challenges Surrounding Crypto in India
While India has been a front-runner in pushing for a global crypto framework, it faces challenges in its own backyard. The nation’s crypto regulatory domain remains tangled in a web of ambiguities, with the rules often termed convoluted and taxations perceived as exorbitant. The imposition of a 30% tax on crypto gains in 2022 mirrored its gambling taxation, triggering a massive exit of emerging crypto firms and causing a significant slump in crypto trading activities.