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India is having \u201cdetailed discussions\u201d with other G20 members about forming a collective standard operating procedure (SOP) to regulate crypto assets, Indian Finance Minister Nirmala Sitharaman has revealed. She also called for \u201ca globally coordinated approach on the regulation of crypto assets\u201d during her recent meeting with <\/strong>International Monetary Fund (IMF) Managing Director Kristalina Georgieva.<\/strong><\/p>\n Indian Finance Minister Nirmala Sitharaman answered some questions regarding crypto mining and regulation on Monday in Lok Sabha, the lower house of India\u2019s parliament.<\/p>\n Noting that cryptocurrencies are largely unregulated in India at the moment, Sitharaman explained: \u201cWhether it\u2019s mining or whether it\u2019s the asset or whether it\u2019s the transaction, we recognize that it is very, completely almost, driven by technology, and a standalone country\u2019s effort in controlling or regulating it is not going to be effective.\u201d She added:<\/p>\n There is an evolving consensus and that\u2019s why in the G20, we are raising this issue and having detailed discussions with the members so that a standard operating protocol [SOP] emerges after the discussions.<\/p>\n<\/blockquote>\n The Group of Twenty (G20) comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the U.K., the U.S., and the European Union. The G20 members represent around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.<\/p>\n The Indian finance minister further told parliament that the aim of the discussions with other G20 members is to have \u201ca coherent, comprehensive approach where all countries work together in bringing some regulation \u2014 whether it\u2019s mining, whether it\u2019s transacting \u2014 and therefore all this is being looked at comprehensively.\u201d She emphasized:<\/p>\n We are working together to get a collective SOP on it.<\/p>\n<\/blockquote>\n Sitharaman similarly told reporters on Saturday that the issue of regulating crypto assets will be taken up at G20 meetings under India\u2019s presidency.<\/p>\n \u201cCrypto is heavily tech led and less of human intervention,\u201d the Indian finance minister was quoted by PTI as saying. \u201cWe are talking to all nations that if regulation has to be framed then one country cannot frame it alone. So we are speaking to all for forming a standard operating procedure so that it is effective \u2026 All these are part of [the] discussion. The process of discussion is on in G20.\u201d<\/p>\n Sitharaman\u2019s statements followed her virtual meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday where she discussed the role of the IMF and other relevant international organizations \u201cto develop a globally coordinated approach on the regulation of crypto assets,\u201d the Indian finance ministry described on Twitter. India\u2019s Economic Affairs Secretary Ajay Seth said earlier this month that the Indian government plans to introduce<\/a> measures around crypto this year.<\/p>\n At the G20 Finance Ministers and Central Bank Governors meeting last October, the Indian finance minister \u201ccalled for an effective tax reporting regime and information exchange between jurisdictions for crypto assets to combat offshore tax evasion,\u201d India\u2019s Ministry of Finance described at the time.<\/p>\n While India does not have a regulatory framework for crypto, the government is taxing crypto income at 30% and has imposed a 1% tax deducted at source (TDS) on crypto transactions.<\/p>\n Earlier this month, Sitharaman presented this year\u2019s Economic Survey to parliament highlighting the need for \u201ca common approach<\/a> to regulating the crypto ecosystem.\u201d This year\u2019s Finance Bill also introduced new crypto tax penalties<\/a>, including jail time for nonpayment of crypto TDS.<\/p>\n Meanwhile, India\u2019s central bank, the Reserve Bank of India (RBI), has continued to recommend a complete been on crypto assets, including bitcoin and ether. RBI Governor Shaktikanta Das has warned that cryptocurrencies are a risk to the country\u2019s financial system and will cause the next financial crisis<\/a> if they are not banned.<\/p>\nG20\u2019s Crypto Regulatory Discussion Underway<\/h2>\n
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