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India’s Finance Minister said the country would create standard operating procedures for cryptocurrency during its next G20 presidency

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India's Finance Minister said the country would create standard operating procedures for cryptocurrency during its next G20 presidency
Nirmala Sitharaman, India’s Finance minister, speaks during a news conference in New Delhi, India, on Tuesday, Feb. 1, 2022. The Reserve Bank of India will launch its digital currency in the year starting April 1, Finance Minister Nirmala Sitharaman said in her budget speech on Tuesday. Photographer: T. Narayan/Bloomberg via Getty Images

According to Finance Minister Nirmala Sitharaman, India would assume the G20 group’s leadership and hold that position for the next year, beginning in December. India is trying to collaborate with the other 19 G20 members to develop a framework for cryptocurrencies that would operate globally as one of its top goals. In a recent press conference, the Finance Minister stated that one of India’s priorities during its year-long G20 chairmanship is determining cryptocurrency’s place in the current financial structure.

According to Finance Minister Nirmala Sitharaman, no one nation can manage and create appropriate regulations to protect the cryptocurrency community from ongoing market instability and exploits cases of digital assets on its own.

“G20 members are doing their analyses on issues about crypto assets. We would want to compile all of this, do some research, and then present it to the G20 so that members can debate it and maybe come up with a framework or standard operating procedure so that nations can have a globally driven regulatory framework based on technology. This is based on the initial premise that no one country can manage or regulate cryptocurrency in any way, according to the Indian finance minister.

Mohammed Roshan, CEO & Co-Founder of GoSats, told Gadgets 360 that Sitharaman is correct in calling for a worldwide standard on rules rather than each country’s laws.

“After all, the transformational potential of cryptocurrencies extends globally and is not tied to any state. This gives India faith that we can lead the crypto revolution and create progressive regulations that would support domestic innovation and serve as an example for the rest of the world, “Roshan added.

The G20 nations, including Argentina, Australia, Brazil, Canada, China, and France, among others, are now examining a draught of the legislation governing the cryptocurrency industry.

In contrast to the existing “mostly anonymous” crypto transfer facilitations, the proposed guidelines curated by the Organisation for Economic Cooperation and Development, or OECD, and submitted to the G20, seek to increase responsibility for crypto transactions.

Cryptocurrencies are frequently utilized to transfer significant sums of money to foreign places while maintaining anonymity since a central bank or regulatory authority does not control them.

The Finance Minister mentioned using cryptocurrencies in money laundering as a significant issue related to digital assets in her remarks at the most recent news briefing.

She emphasized the need for a global agreement on crypto laws and mentioned that several other G20 members have also voiced worries about the same issue.

“We do not want to upset the technology. We want the technology to live on and be useful to the financial industry and other industries. However, suppose it comes down to the question of platforms, trading of assets that have been created, buying and selling, making profits, and, more importantly, in all. In that case, these countries are in a position to understand the money trade. Are we in a position to establish for what purpose it’s being used? Because of the recent experience in India, we detected substantial money laundering,” the Finance Minister highlighted.

According to a recent estimate by the KuCoin cryptocurrency exchange, 15 percent of India’s enormous population—over 115 million people—are presently cryptocurrency investors.

The Finance Minister had appealed for international cooperation on crypto rules in July, while the Reserve Bank of India (RBI) favors a ban on the cryptocurrency industry.

“Whether or whether these policies are favorable will determine the short- to medium-term future of cryptocurrency in India. We may aim for an equal tax system that can combine investor feelings with the government’s intentions to use the industry as a source of income, “Roshan threw in.

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