Prime Minister of India Invites Global Collaboration in Drafting Crypto Regulations

JAKARTA - Prime Minister of India, Narendra Modi, has called for global collaboration in formulating crypto regulations during the Group of 20 (G20) annual meeting. As president of the G20, India has taken on the task of pushing for a comprehensive global framework for regulating cryptocurrencies.

The G20 comprises 19 countries and the European Union, represents the world's major emerging and developing economies, and leads international economic cooperation that has played an important role in strengthening the global architecture and governance of all major international economic issues.

In an interview with a local newspaper, Modi spoke about the role of new technologies such as blockchain and crypto. Modi noted that the nature of this new technology will have a global impact. Therefore, rules, regulations and frameworks cannot be owned by only one country or a group of countries.

Modi gave the example of the aviation industry and said that, like general rules and regulations governing air traffic control or air security, new technologies like crypto should also be regulated globally. He also added that India is contributing to the crypto regulation conversation.

"The G20 India presidency is expanding the crypto conversation beyond financial stability to consider broader macroeconomic implications, especially for emerging markets and economies. Our presidency also hosts valuable seminars and discussions, deepening insights on crypto assets," Modi said, quoted by Cointelegraph.

On August 1, India released a presidential note which included the country's input on the global framework for cryptocurrencies. The suggestions regarding crypto frameworks align with guidelines written by the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund. The note also contains additional advice focused on developing economies.

India has been pushing the global crypto framework for a long time although the domestic crypto regulatory environment remains complex, unclear and highly taxed. The country introduced a 30% tax on crypto profits in 2022, resulting in the abandonment of many startup crypto companies and a sharp decline in crypto trading activity.