G20 countries plan to create a policy consensus on cryptocurrencies to better regulate the asset class.
India’s Federal Economic Secretary Ajay Seth said on Wednesday that G20 countries will study the impact of cryptocurrencies on the economy, monetary policy and banking sector and inform policy consensus, according to a Reuters report.
“Regulation needs to flow in terms of the policies taken. In fact, one of the priorities put on the table is to help countries build consensus on their policy approach to crypto.” he said.
The G20 or Group of Twenty is an intergovernmental forum made up of 19 countries and the EU. We work to address key issues relevant to the global economy, including international financial stability, climate change mitigation and sustainable development.
India currently holds the G20 Presidency and will host the G20’s first financial and central bank delegates meeting in Bengaluru from December 13-15.
The cryptocurrency industry is largely unregulated, and a policy consensus could help various jurisdictions establish a regulatory framework in line with their peers.
In particular, crypto regulation came into focus after the unprecedented collapse of FTX, once the third largest cryptocurrency exchange, costing retail customers billions of dollars. later.
According to reports, the Bahamian government announced on Monday that “after receiving formal notice from the United States that it is likely to file criminal charges against SBF and demand his extradition, the disgraced exchange founder Sam Bankman Freed was arrested.
The Southern District of New York has indicted SBF with eight criminal charges, including wire fraud and conspiracy to misuse customer funds. Separately, the Securities and Exchange Commission has accused SBF of “organizing a scheme to deceive FTX stock investors.”
India seeks global cooperation to regulate crypto
India’s finance minister, Nirmala Sitharaman, has argued that effective regulation and bans require global cooperation. In July, she said the Reserve Bank of India (RBI) believes cryptocurrencies are not currencies because all modern currencies must be issued by a government or central bank.
“Cryptocurrencies are by definition borderless and require international cooperation to prevent regulatory arbitrage. Therefore, laws for regulation or prohibition should be based on risk-benefit assessments and common taxonomies and standards. It may become effective only after significant international cooperation on the evolution of
Earlier this year, the Indian government announced a cryptocurrency tax plan. This included a proposal to tax profits from the transfer of cryptocurrencies at a rate of 30%. In addition, purchasers of virtual digital assets must pay a 1% withholding tax (TDS).