India is having “detailed discussions” with other G20 members on forming a collective standard operating procedure (SOP) to regulate crypto assets, Indian Finance Minister Nirmala Sitharaman has revealed. She also called for “a globally coordinated approach to crypto asset regulation” during her recent meeting with Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva.
G20 crypto regulation discussion is underway
India’s Finance Minister Nirmala Sitharaman answered some questions about crypto mining and regulation Monday in Lok Sabha, the lower house of India’s parliament.
Noting that cryptocurrencies are largely unregulated in India at the moment, Sitharaman explained: “Whether it’s mining or assets or transactions, we recognize that it’s very, almost completely driven by technology and effort of an independent country to control or regulate it is not going to be effective.” She added:
There is an evolving consensus and that is why in the G20, we are raising this issue and having detailed discussions with members so that a standard operating protocol (SOP) emerges after the discussions.
The Group of Twenty (G20) is made up of Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom , USA , and the European Union. G20 members account for around 85% of world GDP, more than 75% of world trade and around two-thirds of the world’s population.
India’s finance minister further told parliament that the aim of discussions with other G20 members is to have “a coherent and comprehensive approach where all countries work together to achieve some regulation, whether it be in mining, be it in transactions, and therefore all this is being looked at in an integral way”. She emphasized:
We are working together to get a collective SOP on this.
Sitharaman similarly told reporters on Saturday that the issue of crypto asset regulation will be taken up at the G20 meetings under the Indian presidency.
“Cryptocurrencies are strongly driven by technology and have less human intervention,” PTI quoted the Indian finance minister as saying. “We’re talking to all nations that if regulation has to be framed, then one country can’t frame it alone. So, we’re talking to everyone to form a standard operating procedure to be effective… This is all part of (the) discussion. The discussion process is underway in the G20”.
Sitharaman’s remarks followed his virtual meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday, where he discussed the role of the IMF and other relevant international organizations “in developing a globally coordinated approach to regulating cryptoactives”, the Indian financial body. Ministry described on Twitter. India’s Secretary for Economic Affairs Ajay Seth said earlier this month that the Indian government plans to introduce measures around cryptocurrencies this year.
At the G20 Finance Ministers and Central Bank Governors meeting last October, India’s finance minister “called for an effective cross-jurisdictional tax reporting and information sharing regime for crypto assets to combat tax evasion in the abroad,” India’s Finance Ministry described at the time.
While India does not have a regulatory framework for cryptocurrencies, the government is taxing cryptocurrency income at 30% and has imposed a 1% deducted at source (TDS) tax on cryptocurrency transactions.
Earlier this month, Sitharaman presented this year’s Economic Survey to parliament, highlighting the need for “a common approach to regulating the crypto ecosystem.” This year’s finance bill also introduced new crypto tax penalties, including jail time for non-payment of crypto TDS.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), has continued to recommend a full statement of crypto assets, including bitcoin and ether. RBI Governor Shaktikanta Das has warned that cryptocurrencies are a risk to the country’s financial system and will cause the next financial crisis if not banned.
Do you think India and the G20 will come up with a collective standard operating procedure to regulate crypto assets this year? Let us know in the comments section.
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