28-8-2023 (NEW DELHI) India, despite its own evolving cryptocurrency landscape marred by regulatory ambiguity and complex taxation, has long championed the need for a comprehensive global framework for cryptocurrencies. Indian Prime Minister Narendra Modi, who currently presides over the Group of 20 (G20) as its president, has reiterated the call for international collaboration in shaping cryptocurrency regulations.
The G20, consisting of 19 nations and the European Union, represents a collective of the world’s leading developed and emerging economies. It holds a pivotal role in facilitating global economic cooperation and governance on critical international economic matters.
During an interview with a local publication, Prime Minister Modi underscored the significance of emerging technologies like blockchain and cryptocurrency, emphasizing their global implications. Modi argued that the rules, regulations, and framework surrounding these technologies should not be the sole prerogative of any single nation or group of countries.
Drawing a parallel with the aviation industry, Modi pointed out that, just as common international standards govern air traffic control and air security, emerging technologies like cryptocurrency should also be subject to global regulation. He noted that India, as the current G20 president, is actively participating in the global discourse on cryptocurrency regulation:
“India’s G20 presidency has broadened discussions on cryptocurrencies beyond financial stability to consider their wider macroeconomic consequences, particularly for emerging markets and developing economies. During our presidency, we have also hosted informative seminars and discussions that have deepened our understanding of crypto assets.”
India’s efforts in this direction were evident when it released a presidency note on August 1, outlining its input on the global crypto framework. The recommendations put forth in this note align with the guidelines established by prominent international bodies such as the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund. Additionally, the note includes specific suggestions tailored to the needs of developing economies.
India’s advocacy for a global cryptocurrency framework has continued despite the challenges it faces in its own regulatory landscape. The country introduced a 30% tax on cryptocurrency gains in 2022, triggering a mass exodus of burgeoning crypto enterprises and a sharp decline in cryptocurrency trading activity.
