Nirmala Sitharaman, India’s finance minister discussed the importance of cryptocurrency regulation with International Monetary Fund (IMF) managing director Kristalina Georgieva.
Sitharaman mentioned that the IMF should take the lead in ensuring proper regulation in this area.
IMF Managing Director Kristalian Georgieva and India’s FM had a discussion regarding a variety of issues, including India’s upcoming G20 presidency and IMF support.
India continues to be a bright spot in the global economy despite the many global geopolitical uncertainties mentioned by IMF MD.
India has also imposed a 30% tax on crypto assets since April 1. Along with that, India has also imposed a 1% at-source deductible tax (TDS) on cryptocurrencies. This deduction applies to transactions over Rs 10,000 (approximately USD 125) for recipients from July 1.
General concerns about cryptocurrencies
Finance Ministers and IMF Directors share concerns about the risks that cryptocurrencies pose to the global economy and the cross-border impacts caused by geopolitical circumstances coupled with tighter financial conditions.
The Finance Minister also stressed that there is a need for energy security.
India wants to focus on the importance of coordinated policy measures along with multilateralism to leverage resources for climate action. India’s FM also claims that carbon pricing may not be a viable policy tool for climate action.