The government of India is in consultation with the International Monetary Fund (IMF), the World Bank and Indian regulators to formulate the country’s crypto policy. “We have reached out to institutional stakeholders within and outside the country. We are taking inputs from IMF and World Bank and incorporating these,” said an official of the Indian Finance Ministry.
Government of India in talks with IMF, World Bank, RBI, SEBI on crypto policy
Indian finance ministry officials are discussing a framework for cryptocurrencies with various stakeholders including the International Monetary Fund (IMF), the World Bank, the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI), Mint Publications Ltd. reported on Thursday.
“We have drafted a consultation paper on cryptocurrencies,” revealed one of the executives, elaborating:
Now, we have reached out to institutional stakeholders within and outside the country. We are taking and incorporating inputs from IMF and World Bank.
“We will update the consultation paper based on that and based on the responses of RBI, SEBI, we will update it,” the official said.
The finance ministry’s consultation paper, which is expected to be finalized in the next six months, will cover how to deal with cryptocurrency, related risks and its treatment as an asset class, given that it is the basis for India. will form. Crypto Policy.
Indian Finance Minister Nirmala Sitharaman has said on several occasions that the government has not decided whether to regulate or ban crypto. However, in the meantime, 30% tax will be levied on crypto income and 1% Tax at Source (TDS) will be deducted on all crypto transactions.
The IMF’s head of mission for India, Nada Chouri, told the publication that crypto assets pose significant risks, including financial stability. Without commenting specifically on India’s crypto policy, he said:
Crypto assets can also be misused for money laundering, terrorist financing and other illegal activities. Unless effective regulatory measures are implemented, the crypto asset ecosystem may face serious consumer protection challenges such as fraud and cyberattacks.
He added that the IMF is also consulting with other countries to establish an effective policy on crypto assets.
IMF Deputy Managing Director Gita Gopinath recently said that a lot more work needs to be done on the regulatory front on crypto and digital money. “We certainly saw an increase in the use of cryptocurrencies before the Russo-Ukraine war,” he said, emphasizing that “this happens more in emerging markets than in others.”
Gopinath had said in December, “Regulation is absolutely necessary for this sector. If people are using it as an investment property, the same rules for other investment classes should apply here as well.”
Furthermore, Bloomberg reported on Friday that India will formulate legislation for cryptocurrencies only after a global consensus on crypto assets.
What do you think about the Indian government’s consultations with international organizations on crypto? Let us know in the comments section below.
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