- India’s PM has called for a global crypto framework.
- The PM wants more countries to join the G20.
- India’s crypto regulatory landscape has yet to change.
India’s Prime Minister Narendra Modi has underscored the need for unified global crypto regulations during the annual Group of 20 (G20) summit.
In an interview with a local daily, Modi stated that blockchain and cryptocurrency are emerging technologies whose potential will impact the whole world soon, making it a priority to embrace, democratize, and harmonize their adoption.
Borderless Regulations
Likening the nascent digital assets industry to aviation, the premier notes that the rules, frameworks, and regulations governing crypto should not be confined to a single jurisdiction or group of countries.
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“A global consensus-based model is needed, especially one which considers the concerns of the Global South. We can learn from the field of aviation. Be it air traffic control or air security, there are common global rules and regulations governing the sector,” said Modi.
The Prime Minister also vouched for a more inclusive G20, calling the group to admit the African Union as part of the crypto conversation. Presently, the G20 is represented by the European Union alongside 19 countries with major developed and emerging economies.
India’s Crypto Regulatory Landscape
As PM Modi calls for a global regulatory framework, India’s crypto regulatory environment is still shrouded with high taxation, ambiguity, and complexities. In 2022, the country introduced a 30% crypto tax on digital asset holdings and transfers, plus another 1% tax deduction at source (TDS) on each trade.
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Since India has not developed a robust regulatory framework for crypto, these tax rules were drawn from gambling and horse betting rules. The effects of such a regressive approach are far-reaching and have taken a toll on the country’s budding and once-bustling crypto industry.
Projects that have shut down since the government imposed the new crypto laws include the WazirX NFT marketplace and WeTrade trading app.
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