India is ready to take on the digital asset world with a little help from its friends! They’re teaming up with international financial powerhouses like the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to create a rock-solid regulatory framework for the digital asset industry.
As the new leader of the G20 pack, India wants to set the agenda and steer the coalition of nations toward a bright future. And they’re not going it alone – the IMF is working with them to create a paper that covers all the important details, like monetary policy, macroeconomics, and the policy approach to crypto assets, as stated by India’s Department of Economic Affairs Secretary Ajay Seth.
The Financial Stability Board is proposing a crypto asset working group, and India is all in! With India at the helm of the G20 for the next year and hosting its summits, they’re ready to push for a unified global approach to virtual currency regulation. So buckle up, digital asset world – India is coming to shake things up!
Preparing for the Strictest of Regulatory Regimes
Analysts are predicting tough regulations under India’s leadership in the G20, given their history with virtual assets. In the past, Indian regulators have considered virtual currencies to be a threat to their financial system and even considered a full-blown ban.
Although a ban hasn’t happened yet, the government has implemented one of the strictest tax policies on the industry. Right now, investors have to pay a whopping 30% tax on gains, with an extra 1% Tax Deducted as Source (TDS) on all transactions. Unfortunately, pleas for a reduction have fallen on deaf ears.
The International Monetary Fund (IMF) has also been known to be hostile towards virtual currencies in the past, even calling it a recipe for global financial disaster. Virtual currency enthusiasts can only hold their breath and see where the regulatory pendulum will swing next. Buckle up, it’s going to be a bumpy ride!