A director at the International Monetary Fund (IMF) says crypto regulation is “definitely high on the agenda” for India. “We are trying to come up with global standards for crypto-asset systems #. I think it is important for India to adopt as well,” the IMF official said.
IMF on Crypto Regulation in India
Tobias Adrian, Financial Adviser and Director of the Monetary and Capital Markets Department of the International Monetary Fund (IMF), discussed the regulation of cryptocurrencies in India in an interview with PTI on Tuesday at the annual spring meeting of the International Monetary Fund and the World Bank.
Adrian said that for India:
Crypto asset regulation is definitely high on the agenda.
“This is something that is happening all over the world,” he stressed. “Within the Financial Stability Board, we are trying to come up with global standards for crypto asset regulations. I think it is important for India to embrace it as well.”
Officials at India’s Ministry of Finance are reported to be consulting with the International Monetary Fund and the World Bank on crypto policies as the government works on how to handle crypto assets.
Then the director of the International Monetary Fund commented on the taxation of cryptocurrency transactions in India. “Of course, I know that India has changed taxes on crypto assets and this is a welcome move.”
The Indian government began taxing cryptocurrency income at 30% without allowing for loss compensation or deductions on April 1. Cryptocurrency trading volumes subsequently declined across the country’s exchanges. An additional 1% tax deducted at source (TDS) will come into effect soon.
Adrian noted that the IMF views India in a “very positive way” in general. He was quoted as saying, “I think there are many opportunities and growth (in India is coming back). There is recovery. There is a lot of excitement about new growth opportunities and new developments… We have always appreciated that growth is inclusive, touching all people. But our overall outlook in India is Somewhat positive.
The IMF official also discussed the Central Bank Digital Currency (CBDC). In India, the central bank, the Reserve Bank of India (RBI), is actively working on the digital rupee which Finance Minister Nirmala Sitharaman said will be introduced in this fiscal year.
Indian Prime Minister Narendra Modi previously explained that “the digital rupee will be the digital form of our physical rupee and will be regulated by the Reserve Bank of India.” “The digital rupee will revolutionize the financial technology sector,” Modi noted. Earlier this month, Deputy Governor of the Reserve Bank of India T. Rabih Sankar said the central bank would embark on launching a digital currency “in a very gradual and calculated manner, assessing the impact along the line.”
Commenting on India’s exploration of a central bank digital currency, the IMF Director said:
This could be very important for financial inclusion and financial development, and we are watching closely what India is doing. We also welcome these political developments.
What do you think of the IMF official’s comments and the Indian government’s approach to cryptocurrency? Let us know in the comments section below.
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