Indian Government Consults with IMF and World Bank on Crypto Policy: Regulation – Bitcoin News

The government of India is consulting with the International Monetary Fund (IMF), the World Bank, and Indian regulators to form the country’s crypto policy. “We have reached out to institutional stakeholders inside and outside the country. We are receiving inputs from the IMF and the World Bank and incorporating them,” said an official from the Indian Ministry of Finance.

Indian Government In Talks With IMF, World Bank, RBI, SEBI Over Crypto Policy

Officials from the Indian Ministry of Finance are discussing a framework for cryptocurrency with various stakeholders, including the International Monetary Fund (IMF), the World Bank, the Reserve Bank of India (RBI), and the Board of Exchange. and Securities of India (SEBI), the Mint publication reported on Thursday.

“We have drafted a consultation document on cryptocurrencies,” revealed one of the officials, explaining:

Now, we have reached out to institutional stakeholders inside and outside the country. We are taking input from the IMF and the World Bank and incorporating it.

“We will update the consultation document based on that, and based on the answers from the RBI, SEBI, we will update it,” the official added.

The Finance Ministry’s consultation paper, expected to be finalized in the next six months, will cover how to deal with cryptocurrency, related risks and its treatment as an asset class, the post conveyed, noting that it will form the basis for the India. crypto policy.

Indian Finance Minister Nirmala Sitharaman has said on several occasions that the government has not decided whether to regulate or ban cryptocurrencies. However, in the meantime, crypto income will be taxed at 30% and a 1% tax deducted at source (TDS) will apply to all crypto transactions.

IMF chief of mission for India Nada Choueiri told the publication that crypto assets posed significant risks, including to financial stability. Without commenting specifically on India’s crypto policy, she opined:

Crypto assets can also be misused for money laundering, terrorist financing, and other illegal activities. Unless effective regulatory measures are put in place, the crypto asset ecosystem could face serious consumer protection challenges such as fraud and cyber attacks.

He added that the IMF is also consulting with other countries to establish an effective policy on crypto assets.

IMF Deputy Managing Director Gita Gopinath recently said that much more work is needed on the regulatory front for cryptocurrencies and digital money. He added: “We have certainly seen an increase in the use of cryptocurrencies” before the war between Russia and Ukraine, emphasizing that “it happens more in emerging markets than in others.”

Gopinath said in December: “Regulation is absolutely important for this sector. If people use this as an investment asset, then the rules that exist for other investment classes should also apply here.”

Furthermore, Bloomberg reported on Friday that India will come up with legislation for cryptocurrencies only after a global consensus on crypto assets is reached.

What do you think about the Indian government consulting with international organizations on crypto? Let us know in the comments section.

kevin helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects, and the intersection between economics and cryptography.

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