Learn how Indian Prime Minister Narendra Modi calls for international collaboration to create comprehensive global regulations for cryptocurrencies at the annual G20 summit. Explore the challenges and benefits of establishing a unified approach to cryptocurrency governance.
Indian Prime Minister Narendra Modi has urged international collaboration in developing regulatory frameworks for cryptocurrencies during the annual Group of 20 (G20) summit. India, currently the president of the G20, is advocating for the establishment of a comprehensive global framework for governing digital currencies.
The G20 includes 19 member countries and the European Union, collectively representing the world's major developed and emerging economies. It serves as a platform for international economic cooperation, addressing critical global economic issues.
In an interview, Modi highlighted the global impact of emerging technologies like blockchain and cryptocurrencies. He stressed that the regulations and frameworks governing these technologies should not be limited to a single country or group of countries. Modi drew parallels with the aviation industry, which is regulated by common rules for air traffic control and security, suggesting that cryptocurrencies should follow a similar global regulatory approach.
India's G20 presidency has broadened the crypto conversation beyond financial stability to consider its broader implications for emerging markets and developing economies. The country's presidency has facilitated seminars and discussions to deepen understanding of crypto assets and their effects.
Earlier in August, India released a presidential note outlining its input on a global cryptocurrency framework. The recommendations align with guidelines established by the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund, with additional considerations focused on developing economies.
Despite advocating for global crypto regulations, India's domestic crypto regulatory environment remains complex and unclear, with high taxation. The country introduced a 30% tax on crypto gains in 2022, resulting in the departure of several crypto companies and a decline in trading activity.
(PRASHANT JHA, CoinTelegraph, 2023)