As India prepares to begin its one-year presidency of the Group of 20 (G20) beginning Dec. 1, it will look to work toward a global, tech-driven regulatory framework for cryptocurrency, India’s finance minister Nirmala Sitharaman said.

See related article: India’s finance minister calls on G20 to share information on crypto

Fast facts

  • “During our engagements, we heard that already institutions which are associated with the G20 or the World Bank or any other, are doing their own assessment and studies of matters related to cryptocurrencies or crypto assets,” Sitharaman said.
  • The minister said the intention is to collate information, study it and place it before the G20 members to discuss and arrive at a framework so that globally countries can have a technology-driven regulatory framework for cryptocurrencies. 
  • India’s government has long viewed digital assets with suspicion, going so far as to impose a 30% flat tax on all crypto income as well as a 1% tax deducted at source on all transactions above 10,000 Indian rupees (US$121) with no provision to offset losses with gains made elsewhere. 
  • Sitharaman also said that India has detected “substantial” cases of money laundering related to crypto and trading of crypto assets, which is a concern acknowledged by several members of the G20. 
  • But the South Asian nation acknowledged the potential for blockchain technology. Last month, Sitharaman said she expects use of blockchain technology to rise by about 46% in the next few years. 
  • India will assume the presidency of the G20 from Dec. 1 to Nov. 30, 2023, and is expected to host over 200 G20 meetings across the country. The G20 is an intergovernmental forum of the world’s major developed and developing economies, collectively accounting for 85% of global GDP, 75% of international trade and two-thirds of the world population. 

See related article: India says a crypto ban would require international collaboration