India is considering crypto and regulation with the G20, according to the finance minister

Finance Minister Nirmala Sitharaman said that while India continues its one-year leadership of the Group of 20 (G20), it is addressing cryptocurrencies and regulation with the group’s members.

“Whether it’s crypto mining, asset or transaction, we recognise that it’s fully driven by technology, and a single country’s efforts to control and regulate it would be ineffective,” Sitharaman said on Monday in answer to a question in the Lok Sabha.

India held the G20 presidency from 1 December to 30 November 2023 and is expected to host over 200 meetings around the nation.

The crypto and Web 3.0 industries in India have based their hopes on these conversations as they await clarification on this emerging asset class.

“India needs solid crypto rules more than any other country in the world, since digital assets are being adopted at an exponential pace,” said Shivam Thakral, co-founder of crypto exchange BuyUcoin, in a statement made available to Forkast.

India has long been suspicious of digital assets, going so far as to levy a 30% flat tax on all crypto revenue and a 1% tax deducted at source (TDS) on all crypto exchanges over 10,000 Indian rupees (US$120).

India also prohibits crypto dealers from offsetting losses against profits and has ignored calls from the sector to reduce trading taxes. According to the India-based technology policy think group Esya Centre, between February and October 2022, about US$3.8 billion may have flowed from India to offshore crypto exchanges as merchants attempted to escape tax levies.

Crypto tax startup KoinX said on Twitter that Sitharaman has implemented a penalty equivalent to TDS for non-deduction, the interest of 15% yearly for late payment, and even imprisonment as a warning against tax avoidance.

“While the present Indian climate may seem hostile for crypto institutions, it is a start that the government is embracing crypto and digital assets,” said Dhruvil Shah, senior vice president of technology at digital wallet infrastructure platform Liminal. However, a one-size-fits-all strategy may not work for India’s diversified digital asset business, according to a statement provided by Forkast by Shah.

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