Cryptocurrency discussions are critical to India’s Group of 20 (G20) presidency, especially after the series of bankruptcies and business failures in the industry last year, India’s Finance Minister Nirmala Sitharaman said on Monday, adding that a common regulatory framework for all countries is underway.
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Fast facts
- “Cryptocurrencies are a very important part of the discussion under the G20 presidency, given so many collapses and shocks. We seek to develop a common framework for all countries to deal with this matter,” Sitharaman said at the Peterson Institute for International Economics (PIIE) in Washington, D.C.
- Sitharaman on Monday discussed the Indian economy’s resilience during tightening financial conditions with PIIE President Adam Posen. She also attended a roundtable meeting with businesses and investors to discuss long-term investment opportunities in India.
- The G20 is an intergovernmental forum of the world’s major developed and developing economies. Emerging economies are set to take the G20 Presidency for three consecutive terms — Indonesia in 2022, India in 2023 and Brazil next year. India is expected to host over 200 G20 meetings during its presidency.
- According to a G20 meeting of finance ministers and central bank governors in February, the Financial Stability Board is expected to submit recommendations on the crypto assets and stablecoin regulation by July this year. The FSB is also scheduled to release its joint paper with the International Monetary Fund on crypto assets’ macroeconomic and regulatory perspectives in September.
- India has approached digital assets with caution. The South Asian nation imposed a 30% flat tax on crypto income and a 1% tax deducted at source (TDS) on crypto trades above 10,000 Indian rupees (US$121).
- India also does not allow crypto traders to offset losses against gains, and has introduced a penalty equal to TDS for non-deduction, interest of 15% annually for late payment, and even a jail term of up to six months.
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