Prime Minister Narendra Modi has stressed that a comprehensive set of rules are necessary govern the crypto sector. PM Modi, during an exclusive interview with Business Today said that it is only wise to keep up pace with advancements in the technological sector. The regulation of cryptocurrencies has been among India’s top agendas as part of its ongoing G20 Presidency that is scheduled to culminate in December this year. India’s finance ministry as well as the Reserve Bank of India (RBI) also deem it important that crypto activities are officially governed.
PM Modi, during his interview, noted that technologies must be democratised and adopted with a unified approach rather than being overlooked.
Talking about the cryptocurrency sector, PM Modi strongly advocated a global consensus-based model that would keep the foundational rules for the sector same for all countries.
“The rapid pace of change of technology is a reality—there is no point in ignoring it or wishing it away,” India Today quoted PM Modi as saying. “At the same time, the rules, regulations and framework around it should not belong to one country or a group of countries. So not only crypto, but all emerging technologies need global regulations.”
India has been working on making internationally workable rules for the crypto sector, taking suggestions and feedback from other G20 nations for the last nine months now.
Global financial institutions like the International Monetary Fund (IMF) and the Financial Stability Board (FSB) are also helping India and the other G20 nations come up with appropriate rules that would oversee the crypto sector on an international level.
PM Modi, in his interview, also acknowledged that a lot of energy and efforts have indeed been channelled into addressing crypto agendas.
“India’s G20 presidency expanded the crypto conversation beyond financial stability to consider its broader macroeconomic implications, especially for emerging markets and developing economies. The G20 reached a consensus on these matters, guiding standard-setting bodies accordingly,” PM Modi added.
On August 1, India posted a presidency note on crypto, giving a status update on the crypto laws work.
Breaking:rotating_light:: India:flag-in:, as the head of the G20 nations, is spearheading the establishment of coordinated global regulations for #Crypto assets.
The presidency note shared below has the potential to redefine global crypto regulations.:fire:
Here’s everything you need to know:thread::point_down: pic.twitter.com/OxL8JzFqsy
— KoinX (@KoinXOfficial) August 3, 2023
Ajay Seth, a senior official of the Indian Finance Ministry had said in July that while major rules for crypto and Web3 are currently under discussions, there is some oversight monitoring the sector.
These include income tax framework for VDAs, the Indian Computer Emergency Response Team (CERT-IN) guidelines to ensure compliance of VDA service providers, the ASCI guidelines for responsible advertising, and the latest inclusion of VDA service providers in the Prevention of Money Laundering Act (PMLA) recognising them as reporting entities