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The Indian government is working with the International Monetary Fund (IMF), the World Bank, and Indian regulators to develop its crypto policy.
“Both inside and beyond the country, we’ve reached out to institutional stakeholders.” “We’re taking ideas from the IMF and the World Bank,” an Indian finance ministry official said.
What exactly Indian government is discussing with IMF?
The IMF, the World Bank, the Reserve Bank of India, and the Securities and Exchange Board of India are all debating cryptocurrency policy with the Indian government.
According to the reports- on Thursday, Indian finance ministry officials are discussing a framework for cryptocurrency with various stakeholders such as the International Monetary Fund (IMF), the World Bank, The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are two of India’s central banks (SEBI).
According to the journal, the finance ministry’s consultation paper, which is scheduled to be finalized in the next six months, will include how to deal with cryptocurrencies, related risks, and its treatment as an asset class, and would serve as the foundation for India’s crypto policy.
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Is India close to banning crypto?
India’s finance minister, Nirmala Sitharaman, has emphasized on several occasions that the government has not decided whether to regulate or ban bitcoin. In the meanwhile, all crypto transactions will be subject to a 1% tax paid at source, and all crypto revenue will be taxed at 30%. (TDS).
According to the journal, the IMF’s mission leader for India, Nada Choueiri, crypto-assets pose considerable dangers, especially to financial stability.
She also noted that the IMF is in discussions with other governments to build a viable crypto-asset strategy.
Additional regulatory work on crypto and digital money, according to IMF Deputy Managing Director Gita Gopinath, is needed. She highlighted that “we’ve obviously seen a rise in the use of cryptocurrencies” in the lead-up to the Russia-Ukraine war, emphasizing that “it happens more in emerging economies than in others.”
“Regulation is definitely vital for this sector,” Gopinath remarked in December. If this is being used as an investment asset, then the same rules that apply to other types of investments should apply here as well.”
Furthermore, according to Bloomberg, India will only draught cryptocurrency legislation if a worldwide consensus has been established on the subject.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
