For young investors, cryptocurrency continues to be one of the most popular types of investments. Yet, due to India's push to regulate cryptocurrencies, the Group of 20 (G20) president, cryptocurrency investors may find themselves in danger.
Shaktikanta Das, governor of the Reserve Bank of India (RBI), stated that some G20 members urged for a total ban on cryptocurrencies. There were perspectives stated that the option of a restriction or prohibition should also be taken into consideration, the RBI Governor said following the two-day meeting of finance ministers and central bank governors in Bngalore. "India should take the lead in forging a worldwide consensus on crypto laws at the G20 conference in 2023, in my opinion. A clear set of laws for digital assets in India are urgently needed, according to Shivam Thakral, CEO of BuyUcoin. "After the historic verdict by the honourable supreme court of India in March 2020, the crypto legislation in India have remained in a hazy area.
"Defining cryptocurrency as a security, commodity, or asset class; regulating stablecoins pegged to fiat; safeguarding retail investors; establishing a licencing regime for crypto exchanges; and regulatory oversight for businesses engaged in the trading of digital assets are some of the critical issues that demand immediate attention from policymakers. Adopting an industry-supportive posture will help us realise the $5 trillion economy dream within this decade, the
BuyUcoin CEO continued, as India is well-positioned to lead efforts in global crypto laws.
In the meanwhile, India has suggested a joint technical study by the Financial Stability Board (FSB) and the International Monetary Fund (IMF) to assist in the establishment of a coordinated and thorough policy response to crypto assets.
Apart from worries over financial integrity, the Indian G20 Presidency wants to expand the conversation on bitcoin assets and take into account the macroeconomic effects and wide-spread usage of cryptocurrencies in the economy. Manan Vora, SVP of Strategy and Business Operations, Liminal, stated that "the Indian digital asset industry is looking at the G20 Summit with a lot of hope, and the onus lies on our policymakers to accommodate the aspirations of young entrepreneurs, users, and the entire workforce employed in the crypto/blockchain ecosystem."
India is ranked sixth in the world in terms of ownership of digital assets (as per the Tipalti report). Despite the absence of rules, this data demonstrates that Indians are knowledgeable about the subtleties of the digital asset market and have the necessary skills to make informed judgements, Vora said.
"On the other hand, since the formal tax framework was created last year, the digital asset tax has emerged as a significant source of tax revenue for the government," he said. If properly controlled, the country's economy might benefit from the industry's ability to provide many jobs.
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