On Wednesday, IMF Managing Director Kristalina Georgieva and FM Nirmala Sitharaman spoke. (Image: Twitter/@FinMinIndia)
The International Monetary Fund (IMF) should also ensure a globally coordinated and synchronized approach to cryptocurrency regulation, Sitharaman said.
The International Monetary Fund (IMF) should play a leading role when it comes to cryptocurrency regulation and ensure a globally coordinated and synchronized approach on the issue, Union Finance Minister Nirmala Sitharaman said. The Finance Minister raised this issue during a recent meeting with IMF Managing Director Kristalina Georgieva in New Delhi. The Treasury also tweeted about the issue.
“FM SMT. @nsitharaman and @KGeorgieva discussed the importance of cryptocurrency asset regulation and the need for a globally coordinated and synchronized approach to this issue. FM smt. @nsitharaman urged the IMF to take a leading role in this regard.” The Treasury said in a tweet Wednesday after Sithraman met Georgieva that day.
FM smt. @nsitharaman And madam. @KGeorgieva We discussed the importance of crypto asset regulation and the need for a globally coordinated and synchronized approach to this issue. FM smt. @nsitharaman He urged the IMF to take a leading role in this regard. (8/10) — Ministry of Finance (@FinMinIndia) September 7, 2022
The IMF chief met India's finance minister on Wednesday to discuss India's upcoming G20 presidency and the IMF's support for India's presidency.
At the spring meeting of the IMF and World Bank last April, Sitharaman proposed a global framework to regulate cryptocurrencies while warning of the potential risks they could pose related to terrorist financing and money laundering.
Regulation using technology is the only answer. You have to be very good at not being behind the curve, but making sure you're above it. And if any one country thinks they can afford it, it is impossible. It has to be done across the board,” the FM said at the time. The IMF pledged to expand its work on cryptocurrency assets during this period, with Sitharaman highlighting the need for an agreement to govern these digital assets.
India currently imposes a 30% tax on profits earned from cryptocurrency assets, effective from April 1 this year. The move was proposed in the Union Budget in February. The Budget also introduced 1% TDS on virtual asset payments exceeding Rs 10,000 per annum and taxation of such gifts in the hands of the recipient. This went into effect from July 1st.
Read all the latest business news and breaking news here.