Indian Prime Minister Narendra Modi, who has long championed the need for a global cryptocurrency framework, recently reiterated this stance during the Group of 20 (G20) summit. As the current president of the G20, India has taken on the responsibility of advocating for a comprehensive global regulatory framework for cryptocurrencies.
The G20 is a pivotal platform for international economic collaboration, playing a crucial role in strengthening global governance and addressing major international economic issues. India’s role as G20 president gives it a unique opportunity to drive discussions on global cryptocurrency regulation.
In a recent interview with a local publication, Prime Minister Modi emphasized the significance of emerging technologies like blockchain and cryptocurrency on a global scale. He stressed that the rules, regulations, and framework governing these technologies should not be confined to a single country or a select group of nations.
Modi drew parallels with the aviation industry, where common global rules and regulations govern aspects such as air traffic control and air security. In his view, emerging technologies like cryptocurrency should also be subject to a consensus that transcends borders. India, he noted, is actively participating in the global conversation on cryptocurrency regulation.
India’s G20 presidency has expanded the scope of this conversation beyond financial stability to consider the broader macroeconomic implications of cryptocurrencies, particularly for emerging markets and developing economies. As part of its presidency, India has organized seminars and discussions to deepen insights into crypto assets.
India has released a presidency note outlining its input on the global cryptocurrency framework. These suggestions align with the guidelines established by international bodies such as the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the International Monetary Fund (IMF). Furthermore, India’s note includes additional recommendations with a focus on the needs of developing economies.
While India has been an advocate for a global cryptocurrency framework, the domestic regulatory environment for crypto within the country remains complex and lacks clarity. Additionally, India imposed a 30% tax on cryptocurrency gains in 2022, a measure that led to the departure of many cryptocurrency companies and a significant decrease in crypto trading activity.
Prime Minister Modi’s call for global collaboration on cryptocurrency regulation at the G20 summit highlights the importance of international consensus in governing this rapidly evolving sector. However, India still faces challenges in establishing clear and favorable regulations for cryptocurrencies within its borders.