Indian Prime Minister Narendra Modi has advocated for a unified global framework to regulate cryptocurrencies, addressing the need for international collaboration on crypto regulations during the G20 summit. With India currently holding the G20 Presidency, Modi highlighted the global impact of emerging technologies like blockchain and cryptocurrencies, emphasizing that their regulation should not be confined to individual countries.
“India’s G20 presidency expanded the crypto conversation beyond financial stability to consider its broader macroeconomic implications, especially for emerging markets and developing economies. Our presidency also hosted enriching seminars and discussions, deepening insights into crypto assets.”
Drawing parallels with the aviation industry’s common global rules, Modi emphasized the necessity of a consensus-driven approach to regulating cryptocurrencies. India’s active involvement in shaping the global crypto conversation is evident through its release of a presidency note, aligning its suggestions with guidelines from organizations such as the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the International Monetary Fund (IMF). This note also includes additional recommendations tailored to developing economies.
However, while India champions international cooperation on crypto regulations, its domestic crypto regulatory landscape remains convoluted. Despite the call for a global framework, India has struggled to establish clear regulatory guidelines and simpler tax policies within its borders. In 2022, the country imposed a hefty 30% tax on cryptocurrency gains, leading to a significant exodus of emerging crypto enterprises and a noticeable decline in crypto trading activities.
As India strives for a harmonized global approach to cryptocurrency regulations on the international stage, it faces the ongoing challenge of streamlining its own regulatory environment and addressing the complexities hindering the growth of its domestic crypto ecosystem.