During the annual G20 summit, Indian Prime Minister Narendra Modi has called for international collaboration in the regulation of cryptocurrencies. As the chair of the G20, India has taken on the responsibility of championing the establishment of a comprehensive global regulatory fra mework for digital currencies.
The G20 is a group of 19 countries along with the European Union, representing the world's major developed and emerging economies. It is a crucial forum for international economic cooperation and governance, particularly in addressing major global economic issues.
In an interview with a local publication, Modi emphasized the global implications of emerging technologies like blockchain and cryptocurrencies. He stressed that the regulations and framework for these technologies should not be limited to one country or a specific group of countries. Drawing a parallel with the Aviation industry, Modi pointed out that just as general rules for air traffic control or security are globally coordinated, regulations for emerging technologies such as cryptocurrencies should also be harmonized internationally.
Modi highlighted that India is actively participating in discussions around cryptocurrency regulations within the G20 framework. Under India's G20 presidency, the focus on cryptocurrencies extends beyond just financial stability and includes broader macroeconomic implicative actions, particularly for emerging and developing economies. The country's stance aligns with recommendations from key international bodies like the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund.
Despite advocating for global cryptocurrency regulations, India's own regulatory environment for cryptocurrencies remains complex and unclear. The introduction of a 30% tax on cryptocurrency gains in 2022 has led to challenges in the country's crypto industry, causing some fledgling cryptocurrency companies to leave and a significant reduction in cryptocurrency trading activity.
