Indian Prime Minister, Narendra Modi, has emphasized the need for global collaboration in formulating crypto regulations during the annual G20 summit. As the current president of the G20, India has taken on the responsibility of advocating for a comprehensive global framework to regulate cryptocurrencies.
The G20 is comprised of 19 countries and the European Union, representing the world’s major developed and emerging economies. It plays a critical role in international economic cooperation, contributing to global architecture and governance on major economic issues.
In an interview with a local daily, Modi discussed the role of emerging technologies such as blockchain and cryptocurrency. He acknowledged their global impact and emphasized that the rules and regulations governing them should not be limited to one country or a group of countries. Modi drew a parallel with the aviation industry, pointing out that air traffic control and air security are subject to common global regulations. Similarly, he argued that emerging technologies like cryptocurrency should also be regulated globally. Modi added that India is actively participating in the crypto regulatory conversation.
India has already made significant contributions to the global crypto framework. On August 1, 2023, the country released a presidency note containing its input on the global framework for cryptocurrencies. The suggestions provided in the note aligned with guidelines from prominent organizations such as the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund. Additionally, India’s note also focused on suggestions for developing economies.
It is worth noting that India’s advocacy for a global crypto framework comes at a time when its own crypto regulatory environment is facing complexities and lack of clarity. The country has imposed a 30% tax on crypto gains, which has led to a mass exodus of budding crypto companies and a decline in crypto trading activity.
Despite these challenges, India remains committed to fostering international collaboration and ensuring a comprehensive and inclusive crypto regulatory framework. The country recognizes the importance of global cooperation in addressing the macroeconomic implications of cryptocurrencies, particularly in emerging markets and developing economies.
The G20 presidency under India’s leadership has provided a platform for enriching seminars and discussions on crypto assets. By expanding the crypto conversation beyond financial stability, India has encouraged deeper insights into the potential of cryptocurrencies.
Modi’s call for global collaboration and his efforts to advocate for a global crypto framework demonstrate India’s commitment to playing a leading role in shaping the future of cryptocurrencies. As the G20 continues its work in formulating regulations, the international community can expect India to be an active and influential participant in these discussions.
In conclusion, Prime Minister Modi’s call for global collaboration on crypto regulations during the G20 summit highlights India’s commitment to advocating for a comprehensive global framework. By emphasizing the need for a global approach to regulating emerging technologies like cryptocurrency, India aims to ensure that the rules and regulations governing these technologies are not fragmented and offer equal opportunities for all countries.