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International Monetary Fund (IMF) Managing Director Kristalina Georgieva says India is \u201ca country that is on the frontline of digital currencies,\u201d especially \u201chow it handles a reduction of risk from crypto assets for the Indian people and businesses.\u201d She met with Indian Finance Minister Nirmala Sitharaman to discuss crypto regulation.<\/strong>\n<\/p>\n \n Responding to a question about \u201cwhat role India can play in improving the global economic situation so as to safeguard the interests of the most vulnerable,\u201d the IMF chief said, \u201cIndia already plays a very important international role.\u201d She elaborated:\n<\/p>\n And it is a country that is on the frontline of digital currencies, especially central bank digital currency and how it handles a reduction of risk from crypto assets for the Indian people and businesses.<\/p>\n<\/blockquote>\n \n Officials of India\u2019s Ministry of Finance have reportedly been consulting<\/a> with the IMF and the World Bank on crypto policies as the government works on how to treat crypto assets.<\/p>\n The Indian government started taxing cryptocurrency income at 30% without allowing loss offsets or deductions on April 1. Crypto trading volumes subsequently plunged<\/a> at exchanges across the country. A further 1% tax deducted at source<\/a> (TDS) will soon go into effect.<\/p>\n \n Emphasizing that regulation is key, Sitharaman detailed:\n<\/p>\n Regulation using technology will have to be so adept that it has to be not behind the curve, but be sure that it is on top.<\/p>\n<\/blockquote>\n \n Tobias Adrian, Financial Counselor and Director of the IMF Monetary and Capital Markets Department, said<\/a> last week that \u201cRegulating crypto assets is certainly high on the agenda\u201d for India.<\/p>\n Meanwhile, India\u2019s central bank, the Reserve Bank of India (RBI), is working on a digital rupee which the finance minister said<\/a> will be introduced this financial year. Earlier this month, RBI Deputy Governor T. Rabi Sankar said the central bank would go about launching a digital currency \u201cin a very calibrated, graduated manner, assessing impact all along the line.\u201d<\/p>\n \u201cThe digital rupee will be the digital form of our physical rupee and will be regulated by the RBI,\u201d Indian Prime Minister Narendra Modi previously explained<\/a>. \u201cThe digital rupee will revolutionize the fintech sector,\u201d Modi noted.<\/p>\nIMF\u2019s Chief Comments on Indian Crypto Policy<\/h2>\n
\nIMF Managing Director Kristalina Georgieva commended the Indian government\u2019s approach to cryptocurrency at an IMF press conference Wednesday.<\/p>\n\n
\nThe IMF boss met with Indian Finance Minister Nirmala Sitharaman Monday, and crypto regulation was among the topics they discussed.<\/p>\nIndian Finance Minister Discusses Crypto at IMF Meeting<\/h2>\n
\nThe Indian finance minister raised concerns about the risks of cryptocurrencies at the IMF meeting last week. \u201cI think the biggest risk for all countries across the board will be the money laundering aspect and the aspect of currency being used for financing terror,\u201d she described.<\/p>\n\n
\nThe Indian finance minister added that it is not possible for one country to do it alone. \u201cThat\u2019s not possible. If any one country thinks that it can handle it. It has to be across the board,\u201d she stressed.<\/p>\n