Since India will resume the G20 Presidency from December 1, 2022, to November 30, 2023, finance minister Nirmala Sitharaman has said that India aims to develop standard operating procedures for Cryptocurrency.
She has also said that India should have its regulatory Framework for Crypto just like the other countries of the group. Most countries that are associated with G20 or World Bank, or any other such organization are already doing some assessments and studies of their own regarding cryptocurrencies and assets.
Thus India, too, should not be lagging on this matter.
The minister said that India, too, will do their part of the study and bring it to the table of the G20 so that the members can discuss it and thereby arrive at a framework so that global countries can have a technology-driven regulatory framework.
The Organisation for Economic Co-operation and Development (OECD) will give the final shape to the cross-border reporting framework. The OECD has also released a new global tax transparency framework, the Crypto-Asset Reporting Framework (CARF), for reporting and exchange of information concerning crypto-assets.
This is in response to an earlier proposal of G20 that the OECD develop a framework for the automatic exchange of information between countries on crypto-assets.
How Will This Framework Help India
Every country, including India, has reported tons of money laundering cases related to Crypto assets.
With this increasing rate of fraudulent crypto cases, finance minister Sitharaman says that a global regulatory framework will help secure crypto-related transactions.
She also mentioned that this new framework would not disturb any prevailing technology but would help the fintech companies make a profit. She further mentioned that to develop a safe space for the trading, buying, and selling of crypto assets, countries must work in unison and have some kind of similar regulation.
Since it is not possible for one government to single-handedly tackle the situation of money laundering, misuse, and trailing, such rules might be helpful.
India’s Stance on Cryptocurrency
India has always been skeptical about accepting crypto assets.
In July, the Reserve Bank of India expressed concerns over crypto trading. The reason behind it is that it de-establishes the monetary and fiscal stability of the country. The RBI further believes that cryptocurrencies are not real as the central bank or the government should issue every modern currency.
Since the union budget did not come up with any regulatory framework even after the RBI had imposed a ban on it, this new framework will hopefully make crypto trading much safer and more beneficial for its users.