The Finance Minister of India, Nirmala Sitharaman, has emphasized the need for the International Monetary Fund (IMF) to develop a globally synchronized strategy for the regulation of crypto assets. She believes that such an approach would be crucial in ensuring the stability and integrity of the financial system, as well as protecting the interests of investors.
The Minister’s call for the IMF’s involvement highlights the growing importance and significance of Cryptocurrency assets and the need for a unified framework to govern their usage and prevent any potential risks. By taking a collaborative approach to regulation, it is hoped that the international community can work together to promote a stable, secure, and transparent environment for the growth and development of the crypto industry.
The Finance Minister, Smt. Nirmala Sitharaman tweeted about her discussion on the role of the International Monetary Fund and other international organizations in creating worldwide cooperation to regulate crypto assets.
The Finance Minister’s remarks came during a virtual meeting with the Managing Director of the IMF, Kristalina Georgieva, to prepare for the upcoming meeting of G20 Finance Ministers and Central Bank Governors, which is set to take place later in the month.
Additionally, Kristalina Georgieva is reported to have praised India for its efforts toward digitalizing the economy, particularly in the realm of digital payments. The Finance Minister also reportedly informed the IMF head that India intends to use its G20 presidency to enhance international governance efforts towards a sustainable future.
This is not the first time that the Finance Minister has advocated for global regulations in the crypto sector. In April of the previous year, Sitharaman made the same suggestion to Georgieva, and as a result, the IMF head publicly supported India’s request.
A request for regulation of cryptocurrencies has been made, following a statement by the Economic Affairs Secretary, Ajay Seth, who stated that India is actively collaborating with the Financial Stability Board (FSB), which is supported by the G20, in order to reach an agreement on cryptocurrency regulation during India’s presidency.
India’s concerns regarding cryptocurrencies stem from issues of money laundering and financing terrorism. The global spread of cryptocurrencies complicates the tracking of these types of remittances and the lack of a unified regulatory framework across various territories further exacerbates the challenge of monitoring these transactions.
The recent surge in cryptocurrency funding has caused a depletion of funds for startups, leading to a cautious attitude among both the government and individual investors. The downfall of prominent companies such as FTX and Terra Luna has contributed to the heightened apprehension toward the cryptocurrency market.
The central government has taken a number of measures to discourage investment in cryptocurrency. These include implementing a 30% tax on income from virtual digital assets and a 1% tax deduction at source for crypto transactions. These actions demonstrate the authorities’ efforts to tighten regulations in the industry.
