India is actively engaging in extensive talks with different G20 nations in order to develop a common standard operating process (SOP) to manage crypto assets. This was revealed by Indian Finance Minister Nirmala Sitharaman, who also called for “a globally coordinated approach to crypto asset regulation” during her current meeting with Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva.
G20 Crypto Regulation Discussions in Progress
India’s Finance Minister Nirmala Sitharaman answered questions regarding regulation and crypto mining on Monday in Lok Sabha – the lower house of India’s parliament.
Sitharaman noted that it is important to note that cryptocurrency are often unregulated. She stated: “Whether it is mining or assets or transactions, we acknowledge that it is very, virtually entirely driven by technology and power of an independent nation to regulate or regulate it isn’t going to be effective.” She added:
There is an evolving consensus. This is why, on the G20. We’re raising the issue and having detailed discussions with members in the interest of establishing a standard operating procedure [SOP] that emerges after conversations.
The Group Of Twenty (G20) is comprised of Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom USA, and the European Union. G20 members make up around 85% of the world’s GDP. They account for more than 75% of global trade and two-thirds (or roughly) of the world’s population.
India’s finance minister further informed parliament that the aim of talks with different G20 members is to have “a coherent and comprehensive strategy where all countries work together to achieve some regulation, whether it’s in mining, be it in transactions, and therefore all that is being looked at in an integrated fashion”. She emphasized:
We are collaborating to attain a shared SOP.
Sitharaman similarly informed journalists on Saturday that the issue of crypto asset regulation would be raised at the G20 conferences. According to Indian presidency.
“Cryptocurrencies are powerfully 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 digital meeting was accompanied by remarks from International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday. She mentioned the IMF’s role and other related international organizations in developing “a globally coordinated approach to regulating cryptoactives”. This was also described by India’s Secretary For Economic Affairs Ajay Seth earlier this month.
At the G20 Finance Ministers And Central Bank Governors last assembly in October, India’s Finance minister “called for an effective cross-jurisdictional tax reporting and information sharing regime for crypto assets to combat tax evasion overseas,” India’s Finance Ministry described at the time.
While India does not have a regulatory framework for cryptocurrency. Nevertheless, the government has taxed cryptocurrency earnings at 30 percent and imposed a 1% deduction at source tax on crypto 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.” Additionally, crypto tax penalties were added to this year’s finance bill, along with jail time for nonpayment of crypto TDS.
Meanwhile, India’s central bank, Reserve Bank Of India (RBI), continues to advocate for full ban of crypto assets including bitcoin and other ether. RBI Governor Shaktikanta Das warned that cryptocurrencies are a threat to the nation’s financial systems and could cause the financial crisis if they are not prohibited.
Can you imagine that the G20 will provide a standard operating process that allows managing crypto assets in this year? Let us know via the comments section.
