India’s Finance officials discuss Crypto Regulations with IMF

The finance ministry of India is currently discussing a framework for cryptocurrency with several organizations such as the International Monetary Fund, The World Bank, The Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI).

“We have drafted a consultation paper on cryptocurrency,” one of the officials revealed, elaborating:

“Now, we have reached out to institutional stakeholders within the country and outside. We are taking inputs from the IMF and the World Bank and incorporating these.”

“We will update the consultation paper based on that, and based on the responses by the RBI, SEBI, we will be updating it,” the official added.

The Ministry’s consultation paper covers the protocols of how to deal with cryptocurrency, its related risks, and its treatment as an asset. According to ministry officials, the publication will form the basis for India’s crypto policy.

Finance Minister Nirmala Sitharaman stated that the government has not decided on whether or not to ban crypto. However, crypto income gains are currently being taxed at 30% with a 1% tax deducted at source (TDS) on all crypto transactions.

IMF mission chief for India, Naka Choueiri, stated that the assets pose a significant risk to financial stability.

“Crypto-assets can also be misused for money laundering, terrorist financing, and other illegal activities. Unless effective regulatory measures are implemented, the crypto assets ecosystem could face serious consumer protection challenges such as fraud and cyberattacks.”

Furthermore, she adds that the IMF is also consulting with other countries to establish an effective policy on crypto assets.

“Regulation is absolutely important for this sector. If people are using this as an investment asset, then the rules which are there for other investment classes should apply here as well,” said IMF Deputy Managing Director Gita Gopinath.

Source: Bitcoin News