Nirmala Sitharaman, India’s finance minister, asked the G-20 countries on Thursday to include cryptocurrencies and other digital assets in the automatic exchange of information.
At the third G20 ministerial symposium on tax and development, which took place in Bali, the Indian finance minister said that a lot of people now try to avoid paying taxes by moving their unaccounted wealth into non-financial assets.
India wants to create a global strategy around crypto for effective regulation. Sitharaman’s ministry will soon release a validation paper on virtual assets. India’s financial budget for the year 2023 has decided to put a 30% tax on any kind of virtual assets.
India will also put 1% TDS (Tax deducted at source). It will be deducted when any type of payment is made after the transfer of cryptocurrencies.
Sitharaman’s goal is to regulate digital assets on a global level and create a financial framework that will tackle the risks of terror funding and money laundering.
She has announced that there is positive feedback on the automatic exchange of information regarding worldwide financial accounts.
Union Finance Minister Smt. @nsitharaman in conversation with Ms @KGeorgieva, MD, @IMFNews on the sidelines of #G20FMCBG meeting, in Bali, today. The Finance Minister and MD, @IMFNews, discussed issues related to global #economy and #G20Finance agenda. (1/2) pic.twitter.com/OKbuSXrsNs
— Ministry of Finance (@FinMinIndia) July 14, 2022
More insights into the G20 summit
More than 100 countries will be providing information on financial accounts under the CRS (common reporting system).
Global financial regulators, such as the FSB (financial stability board), a branch of the G-20 Nations’ economic department, stated in October that they want to establish a strong global standard for cryptocurrency.
These upcoming laws and regulations are due to the recent crash in the crypto market as well as illegal activities carried out on a large scale by their unregulated use.