For the first time since taking over the G-20 presidency, India has officially revealed details of the ongoing work around how to regulate crypto.
"IMF is working on a paper in consultation with us (India) which will focus on "aspects of the monetary policy and the policy approach to crypto assets," said Ajay Seth, Secretary, Department of Economic Affairs.
Seth also revealed that the IMF had led a meeting with representatives of developing economies around the paper in January. The details confirmed CoinDesk's earlier reporting around the IMF's role in the G-20s crypto related discussions.
"There's going to be 135 minute seminar on crypto assets on the policy response (during a G-20 meeting later this month) and for that again the IMF is preparing the finalized paper that will form the base," he added.
India assumed the presidency of the G-20 or Group of 20 – the intergovernmental forum of the world’s 20 largest economies including the European Union as a bloc – on Dec. 1 giving it the responsibility of shaping the group’s agenda. On the eve of taking over the presidency, India's Finance Minister Nirmala Sitharaman had said how to regulate crypto assets will be a priority.
India's position on whether crypto is legal or not has been completely clear since it imposed stiff taxes in 2022 but didn't declare it as legal.
“I don’t wait till regulation comes into place for taxing people who are earning profits,” the Indian Finance Minister said when asked how a nation can tax something that it doesn’t acknowledge is legal.
"The question of legality will come only if something is declared illegal. Crypto assets are not illegal in this country," Seth explained becoming the second official to give clarity on the matter.
India's draft bill for crypto regulation has been in cold storage after it felt global consensus is needed first.
"We had prepared a bill (which) went through internal discussions. Thereafter there was a consensus that we have to deal with it at the global level," Seth said.
In terms of next steps for India in shaping global crypto policy the plan is to take the progress of the IMF paper from consensus at the G-20 to the crypto assets working group of the Financial Stability Board and then "all countries put together" because crypto is an asset class that can be traded across the board and thus "it requires all countries" to accept the policy, Seth said.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
XRP ruling by Judge Torres denied in Coinbase lawsuit, yet another blow to Ripple
XRP programmatic sales ruling by Judge Torres completely rejected by US Court in Coinbase lawsuit. US Court rejected Coinbase’ motion to dismiss SEC lawsuit, weighing heavily on Ripple’s legal battle.
Sushi price eyes $3 after clearing key weekly resistance level
Sushi price flips the $1.628 resistance level into a support floor after a month of struggle. A temporary retracement might be a good opportunity to accumulate SUSHI before a retest of $3. A breakdown of the $1.267 barrier would invalidate the bullish thesis.
Bitcoin Price Outlook: Will $150 billion bank Morgan Stanley send BTC to new ATH?
Bitcoin has recorded increased volatility this week, with most of BTC holders currently in profit. As market activity continues to grow with long-term holders now ramping up on distribution pressure, the pioneer crypto is bearing the brunt of growing overhead pressure.
Coinbase loses first round of battle against SEC
A day after the SEC filed a lawsuit against Binance last year, it went after Coinbase in a sign that the clampdown is extending to key players in the industry. The latest development in the matter is that the court has ruled in favor of the financial regulator, which means the case will continue.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.