- India’s Prime Minister calls for a global regulatory framework for cryptocurrency and artificial intelligence.
- He emphasized the importance of adopting a global regulatory framework for crypto due to its global impact.
India’s Prime Minister Advocates for Global Crypto Regulatory Framework
Narendra Modi, India’s Prime Minister, highlights the need for a global regulatory approach for the crypto and AI industry. He calls for global collaboration and framework formulation during the G20 Summit next month.
He emphasized that the technology change is one of global impact, and he suggested a global framework for regulating such technologies.
“…At the same time, the rules, regulations, and framework around it should not belong to one country or a group of countries. So, not only crypto but all emerging technologies need a global framework and regulations. A global consensus-based model is needed,” Modi said.
He further explained how India’s presidency of the G20 has contributed to the cryptocurrency regulation matter. According to his statement, India has hosted seminars and sessions to provide deep insights into the cryptocurrency world.
“India’s G20 presidency expanded the crypto conversation beyond financial stability to consider its broader macroeconomic implications, especially for emerging markets and developing economies. Our presidency also hosted enriching seminars and discussions, deepening insights into crypto assets,” Narendra Modi said.
India’s Call for Regulation Contrasts with the Country’s Lack of Support for Crypto
The call, made by India’s Prime Minister on a regulatory approach for cryptocurrency, highly contrasts with the country’s subtle anti-crypto policies.
India has expressed its lack of support for cryptocurrency in several ways.
The Governor of the Central Bank of India once regarded the cryptocurrency sector as a significant threat to the country’s macroeconomic and financial stability.
In 2022, India proposed a 30% taxation rate on all cryptocurrency gains, which led to a sudden decline in cryptocurrency trading. Multiple crypto companies migrated from India due to the unfavorable tax rate on cryptocurrency gains.
Despite the country’s decision to plummet crypto trading activity through its harsh policies, it has continued to develop its Central Bank Digital Currency called E-Rupee.
India G20 Presidency Notes Support Roadmap for Global Crypto Regulation
On Aug 1, India released its G20 Presidency notes, expressing its support for the Financial Stability Board recommendations for a crypto regulatory framework.
After declaring its support for the FSB recommendations, the country also suggested some additions to the paper.
“…However, there is still a need for coordination in the consistent implementation of regulations and guidance put in place by different jurisdictions. The FSB and (SSBs) have developed a shared work plan for 2023 and beyond. The FSB and SSB will use the work plan to undertake work both individually and collaboratively under their respective mandates to promote the development and implementation of a comprehensive and coherent global regulatory framework commensurate with the risks crypto-assets may pose to jurisdictions worldwide,” the note reads.
The G20 (Group of Twenty) consists of 19 nations and the European Union. It is a forum for international economic cooperation. India currently holds the Presidency position of the G20, and it is responsible for consulting with the other members over developments in the global economy.