Indian PM Modi calls for global cryptocurrency framework at G20 Summit

PM Narendra Modi advocates for global collaboration on crypto regulations

Indian Prime Minister Narendra Modi has urged for global cooperation in formulating regulations for cryptocurrencies during the recent Group of 20 (G20) summit. As the current President of the G20, India has taken on the task of advocating for a comprehensive global framework for regulating digital currencies.

Importance of global consensus on emerging technologies

In an interview with a local daily, PM Modi emphasized the importance of addressing the impact of emerging technologies like blockchain and cryptocurrency on a global scale. He compared them to the aviation industry, where common global rules and regulations, such as those for air traffic control and air security, have been established. Modi argued that a similar worldwide consensus is necessary for the regulation of cryptocurrencies, as their influence extends beyond the boundaries of any one country or group of countries.

India's role in the crypto regulatory conversation

PM Modi highlighted India's contribution to the discussion on crypto regulations as the current G20 Presidency. He stated, "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."

India's alignment with global guidelines

India released its presidency note, which included its input on the global framework for cryptocurrencies. The suggestions put forth by India are in line with the guidelines provided by the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the International Monetary Fund (IMF). Additionally, the note contains additional suggestions with a specific focus on developing economies.

Challenges in India's crypto regulatory environment

While India has been advocating for a global crypto framework, the regulatory environment within the country itself remains complex and lacks clarity. The imposition of a 30% tax on crypto gains in 2022, similar to gambling taxation, has led to a significant decline in activity within the crypto sector. Many crypto companies have chosen to leave India, exacerbating the challenges faced by the industry.