India’s efforts to regulate cryptocurrencies have received crucial support from the International Monetary Fund (IMF) and the United States. As the current president of the G20 bloc, India has long been advocating for global regulation of cryptocurrencies and plans to leverage its position to achieve this.
During a recent meeting between finance chiefs of the G20 countries, India’s finance minister shared the country’s plans to develop a single regulatory framework and gained support from the IMF and the US.
However, India’s stance on crypto has been controversial, with the Reserve Bank of India calling for a ban on cryptocurrencies due to their similarity to Ponzi schemes.
Additionally, India already has policies in place that appear anti-crypto, such as the 1% tax on every sell crypto transaction and the 30% capital gains tax, which have had significant effects on the Indian crypto industry.
The IMF, which has been a long-term critic of cryptocurrencies, also shares India’s view. Its managing director, Kristalina Georgieva, suggested that banning crypto should be an option during a recent meeting with India’s finance minister.
The organization recently released a nine-point action plan on how countries should treat crypto, which includes a suggestion that digital assets should not be legal tenders.
While global regulation of cryptocurrencies may be a good idea, having India at the forefront could cause alarm for the nascent industry. It remains to be seen how India’s plans for regulation will affect the future of cryptocurrencies in the country and around the world.
