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India Will Discuss Crypto During G20 presidency, says Finance Minister

Nirmala Sitharaman, India's finance minister, announced the country's plan to develop SOPs for cryptocurrencies during its G20 presidency, which spans from December 1, 2022, to November 30, 2023.

18-Oct-2022 By: Sudeep Saxena
India Will Discuss C

On Oct 15, Indian Finance Minister Nirmala Sitharaman discussed the government's strategy for crypto regulation. 

The Finance Minister discussed the strategy before concluding her journey to Washington, D.C., to attend the annual meetings of the IMF and the World Bank, reported a local media outlet.

The finance minister told a group of Indian journalists that cryptocurrency will be on the table during India's G20 presidency. Noting that numerous groups are conducting their own study on cryptocurrencies, she stated:

“We would absolutely like to compile all of this and perform some research before bringing it to the G20 table. As a result, the members can discuss it and perhaps develop a framework or SOP so that nations throughout the world can have a technology-driven regulatory framework.”

However, Sitharaman emphasized that “we do not want technology to be disrupted. We want the technology to survive while also allowing fintech and other industries to profit from it.”

The finance minister then addressed the Enforcement Directorate (ED) of India, which is responsible for identifying money laundering activities involving crypto assets and crypto trading platforms.

This concern has been recognized by various G20 members, who have said yes to the money trail, yes to money laundering, yes to drug addiction, and so on, Sitharaman stated, concluding:

There is consensus that some type of regulation is required, and that all countries must collaborate to put it in place. No single country will be able to tackle it alone. So we'll definitely have something on it.”

The Indian government is apparently seeking to formalize its stance on the legality of cryptocurrencies by the first quarter of next year in order to become FATF compliant after sitting on a draft crypto bill for several years. Last month, the finance minister requested the IMF to take the lead in cryptocurrency regulation. The IMF stated that it is willing to collaborate with India on cryptocurrency regulation.

While India has yet to develop a legal framework for cryptocurrencies, the nation is currently taxing cryptocurrency revenue at 30% and levying a 1% TDS on cryptocurrency transactions. Furthermore, the Ministry of Finance is said to be investigating how the goods and services tax (GST) may be applied to cryptocurrency.

Meanwhile, the Reserve Bank of India (RBI) remains concerned about cryptocurrencies. The central bank has frequently suggested that all non-government-issued cryptocurrencies, including bitcoin and ether, be banned entirely. However, the finance minister stated in July 2022 that “any legislation intended to regulate or outlaw anything cannot become effective unless there has been intensive international cooperation in assessing the risks and advantages and developing a uniform taxonomy and standards.”

What are your thoughts on India's finance minister's remarks? Do you believe India will eventually have a crypto regulatory framework? Please share with us in the comments section below.

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