PM Modi Calls for Global Crypto Regulations: Unified Framework Needed

•India’s Prime Minister Narendra Modi has called for unified global crypto regulations during the G20 summit.
•He advocates for a more inclusive G20 and a consensus-based model that considers the concerns of the Global South.
•India currently has a regressive approach to crypto regulation, with high taxation, ambiguity, and complexities affecting its burgeoning industry.

PM Modi Calls For Unified Crypto Regulations

India’s Prime Minister Narendra Modi has urged countries to discuss unified global cryptocurrency regulations during his annual G20 summit address. He proposed that the rules governing crypto should be harmonized across borders, similar to aviation standards. Modi also suggested that the G20 group should expand by including African Union as part of the conversation on digital assets.

Regulation Landscape in India

In India, there is still no cohesive framework in place for regulating cryptocurrencies despite their growing popularity. In 2022, the government imposed taxes of 30% on digital asset holdings and transfers plus an additional 1% tax deduction at source (TDS) on each trade that have taken a toll on local industry projects such as WazirX NFT marketplace and WeTrade trading app.

Aviation Analogy

Modi likened blockchain and cryptocurrency technology to aviation; just as air traffic control or air security are governed by common global rules and regulations, so too should this nascent digital asset industry adopt such measures in order to facilitate its adoption around the world.

Global South Concerns

The Prime Minister voiced his concern over considering the issues of developing nations when creating these unified global regulations; he believes it is essential to take into account their interests when building frameworks for cryptocurrency adoption.

Can Regulations Save Cryptocurrency?

As PM Modi calls for international cooperation between countries when dealing with cryptocurrencies, it remains to be seen whether any form of regulation can save these digital assets from future market dips or not.