Cryptocurrency investors in India have not been showing a favorable stance from their government. Crypto traders are liable to pay as high as 30% taxes on their crypto investments. IMF, which has been vocally opposed to the promotion of cryptocurrencies, has recently lent its support to India in association with the US government.
The international powers are backing the plans of South Asian nations to head the matter of cryptocurrency regulations at the next G20 summit. The representative of the Indian government has plans to reflect on the matter of global cryptocurrency regulations and the risks associated with it.
Indian Finance Minister has Brought the Attention of G20 Member Countries towards Crypto Regulations
The finance minister of India was heading the discussion on the matter of crypto-related regulations during the current G20 meeting. She expressed her concerns about the risks associated with crypto trading and appealed to the member countries to join forces to create a crypto-specific legislative structure.
Commenting on the matter, US Treasury Secretary told the media about the latest development taking place in the G20 summit on this matter. She claimed that it was important to ensure that sovereign nations introduce a stringent framework to regulate cryptocurrencies.
The US government has maintained a milder stance towards the cryptocurrency sector. IMF, on the other hand, does not harbor such peaceful sentiments.
IMF managing director Kristalina Georgieva has reported about heading a meeting in tandem with Indian finance minister Nirmala Sitharaman. The subject matter of the meeting was about exploring the possibility of banning crypto altogether.
Following the tightening regulations around cryptocurrencies, the cryptocurrency industry in India has started to shrink. Analytics firms such as Esya Centre have reported that since the new policy changes, about $3.8 billion of trading volume has migrated from India to foreign exchange platforms.
The report also informed that following the explosive taxation laws, Indian cryptocurrency traders moved from local crypto platforms to foreign options rather than halting crypto trading.