The IMF and the United States endorse India’s G20 proposal to coordinate global crypto regulation

At the most recent G20 conference, the International Monetary Fund and the United States expressed support for India’s proposal to coordinate worldwide crypto regulation.

India, which now holds the G20 presidency, has advocated for a coordinated global effort to regulate the emerging digital asset business and reduce its possible dangers.

At the most recent G20 conference, which concluded on Saturday, the country’s finance minister hosted a seminar where member states shared their worries about the dangers posed by cryptocurrencies and discussed how to develop a uniform framework.

Janet Yellen, U.S. Treasury Secretary, told Reuters on the sidelines of the G20 conference in Bangalore that a robust regulatory framework was “crucial” but that the United States had not supported outright prohibitions.

Unfortunately, the IMF was not very friendly. After co-chairing a meeting with Indian Finance Minister Nirmala Sitharaman, the organization’s Managing Director Kristalina Georgieva told reporters that crypto bans should be considered.

The Reserve Bank of India (RBI) has long had a negative view of digital assets, stating that the emerging asset class has no intrinsic value. The central bank has repeatedly cautioned investors and the government against crypto, citing its volatility and fraud concerns.

Earlier this year, the governor of India’s central bank, Shaktikanta Das, said that cryptocurrencies have no inherent value and that their apparent value is entirely fictitious. He said that cryptocurrencies are not even worth a flower, referring to the infamous Dutch tulip mania of the early twentieth century.

The Indian government has discussed developing legislation to regulate cryptocurrencies despite pressure from the central bank to prohibit them. In July, the Indian government said that effective regulation or prohibition of cryptocurrencies would need international cooperation.

India’s contentious crypto tax proposals, which include a 30% tax on cryptocurrency revenue and a 1% tax deduction at source (TDS) at the moment of payment of a cryptocurrency transfer, have had a negative influence on trading volumes on local cryptocurrency exchanges.

According to a report by Esya Centre, a Delhi-based think tank for technology policy, Indian crypto traders have shifted over $3.8 billion in trading volume from local exchanges to foreign crypto platforms since the implementation of the country’s contentious tax policy.

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