Indian Prime Minister Narendra Modi has called for global cooperation on cryptocurrency regulations during the G20 summit. India, the G20 chair, has taken on the task of advocating for a comprehensive global regulatory framework for cryptocurrencies.
The G20 is the premier forum for international economic cooperation and plays a key role in strengthening the global architecture and governance of all major international economic issues. India currently holds the G20 presidency.
period interview The Indian prime minister spoke about the role of emerging technologies such as blockchain and cryptocurrencies in an interview with a local daily. Modi noted that the nature of such emerging technologies will have global implications. Therefore, the rules, regulations and framework around it should not belong to one country or group of countries.
Citing the example of the aviation industry, Modi said that just like there are common global rules and regulations for air traffic control or air security, emerging technologies such as cryptocurrencies should also have a worldwide consensus. He further added that India is doing its part in the cryptocurrency regulatory conversation:
During India’s G20 presidency, the topic of cryptocurrencies has been expanded beyond financial stability to consider its wider macroeconomic impact, especially on emerging market and developing economies. Our chairmanship has also produced a wealth of workshops and discussions that have deepened insights into cryptoassets. “
India has released its chairman’s statement, which includes its views on the global framework for cryptocurrencies. The recommendations on the crypto framework are aligned with guidelines prepared by the Financial Stability Board FSB, the Financial Action Task Force (FATF) and the International Monetary Fund (IMF). The note also contains other recommendations focused on developing economies.
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India has long advocated for a global cryptocurrency framework, however, domestically, the cryptocurrency regulatory environment remains clouded by complexity, lack of transparency and high taxes. The country imposed a 30% tax on cryptocurrency gains in 2022, which is very similar to a gambling tax, leading to an exodus of new cryptocurrency companies and a sharp drop in cryptocurrency trading activity.
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