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<p class="is-style-lead">India is set to make a decisive move on cryptocurrency regulations following recent global discussions, leaning away from an outright ban. </p> 
<p class="is-style-default">The nation plans to align its crypto regulations with <a href="https://crypto.news/fsb-finally-publishes-global-regulatory-framework-for-crypto-activities/" rel="noopener noreferrer nofollow">recommendations</a> of the International Monetary Fund (<a href="https://crypto.news/imf-report-claims-crypto-adoption-pose-risk-to-financial-stability/" rel="noopener noreferrer nofollow">IMF</a>) and Financial Stability Board (FSB).</p> 
<h2 class="wp-block-heading" id="india-rethinks-ban">India rethinks ban</h2> 
<p>India has consistently advocated for a unified global regulation for Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) and other cryptocurrencies, focusing on curbing tax evasion and <a href="https://crypto.news/singapore-police-seize-735m-in-money-laundering-crackdown/" rel="noopener noreferrer nofollow">money laundering</a>. Initially, the Reserve Bank of India (<a href="https://crypto.news/reserve-bank-of-india-cryptocurrency-banking-ban/" rel="noopener noreferrer nofollow">RBI</a>) pushed for an outright prohibition of cryptocurrencies, comparing the latter to gambling.</p> 
<p>However, authorities have since underlined the futility of a single-country ban and <a href="https://business-standard.com/economy/news/india-to-decide-on-crypto-imf-fsb-paper-to-act-as-bottom-line-official-123091000538_1.html" target="_blank" rel="noopener noreferrer nofollow">emphasized</a> the significance of reaching a shared agreement on the fundamental regulations outlined by the IMF and FSB. This stands as a pivotal point in the ongoing crypto discourse.</p> 
<h2 class="wp-block-heading" id="g20-leaders-rally-behind-imf-fsb-recommendations">G20 leaders rally behind IMF-FSB recommendations</h2> 
<p>The recent <a href="https://crypto.news/india-led-g20-proposes-global-crypto-regulatory-framework/" rel="noopener noreferrer nofollow">G20</a> leaders’ summit has endorsed the IMF-FSB recommendations, setting the stage for further discussions among ministers and governments. These recommendations provide a “roadmap” and propose minimal regulations that every country should adopt concerning cryptocurrencies.&nbsp;</p> 
<p>However, it’s important to note that countries can implement more stringent regulations based on perceived risks.</p> 
<p>The official further explained how a global consensus would be essential for cryptocurrency regulations to be effective. While any single country can choose to ban cryptocurrencies within its borders, enforcing such a ban becomes exceedingly challenging if the rest of the world doesn’t follow suit.&nbsp;</p> 
<p>The emphasis here is on finding common ground to regulate cryptocurrencies comprehensively.</p> 
<h2 class="wp-block-heading" id="minister-calls-for-global-crypto-regulation">Minister calls for global crypto regulation</h2> 
<p>India’s Minister of Finance, <a href="https://crypto.news/indias-finance-minister-calls-for-global-crypto-regulation/" rel="noopener noreferrer nofollow">Nirmala Sitharaman</a>, recently took center stage at the Global Fintech Fest 2023, where she stressed the need for international cooperation in regulating crypto assets.</p> 
<p>Sitharaman underscored that a global framework in this rapidly evolving landscape is paramount to comprehensively tackling the multifaceted challenges of crypto assets.&nbsp;</p> 
<p>Her call for unity in regulation reflects a broader recognition that cryptocurrencies transcend national borders and necessitate a coordinated response from the international community.&nbsp;</p> 
<p>The minister’s perspective about regulation is for countries to function hand in hand to shape the future of finance.</p> 
<p> You might also like: <a href="https://crypto.news/new-turmoil-swings-indian-crypto-exchanges-in-balance/" rel="noopener noreferrer nofollow"> New turmoil swings Indian crypto exchanges in balance </a> </p> 
<h2 class="wp-block-heading" id="india-struggles-with-crypto-regulation">India struggles with crypto regulation</h2> 
<p>India has faced difficulties in shaping its crypto regulations. In March, the country’s finance ministry <a href="https://crypto.news/indian-government-announces-new-crypto-regulations/" rel="noopener noreferrer nofollow">outlined</a> plans to regulate virtual digital assets and clarified the application of anti-corruption regulations to the crypto industry.&nbsp;</p> 
<p>This classification includes any digital information or token created through cryptography, excluding Indian and foreign currencies.&nbsp;</p> 
<h2 class="wp-block-heading" id="tax-relief-demands-amid-investor-exodus">Tax relief demands amid investor exodus</h2> 
<p>The local crypto industry in India has <a href="https://crypto.news/indian-crypto-industry-calls-for-tax-cuts-amid-investors-exodus/" rel="noopener noreferrer nofollow">called</a> for tax relief on crypto investments due to a <a href="https://crypto.news/regulatory-india-blockchain-talent/" rel="noopener noreferrer nofollow">significant exodus</a> of investors to foreign exchanges. </p> 
<p>These calls include a reduction in the TDS rate from the current 1% to 0.1%-0.001% and allowing loss offsets. The industry seeks to address the consequences of unfavorable tax policies on digital asset investments.</p> 
<p> You might also like: <a href="https://crypto.news/indian-crypto-exchange-coindcx-cuts-staff-amid-bear-market/" rel="noopener noreferrer nofollow"> Indian crypto exchange CoinDCX cuts staff amid bear market </a> </p> 
<p>Introducing a new 1% tax on crypto transactions in India has resulted in a considerable outflow of traders. It poses a threat to the sustainability of major exchanges in the country. This tax policy, alongside the existing capital gains 30% tax on crypto investments and the removal of loss offsets, has made it challenging for market participants to maintain profitability.</p> 
<h2 class="wp-block-heading" id="unexpected-outcomes-of-tax-policies">Unexpected outcomes of tax policies</h2> 
<p>The government’s expectations of increased profitability through these tax policies have not materialized. Crypto trading operations, especially high-frequency trading, have seen a significant <a href="https://crypto.news/trading-volumes-fall-sharply-as-a-new-crypto-tax-is-introduced-in-india/" rel="noopener noreferrer nofollow">decline</a> in expected returns. These outcomes highlight the complexities and potential unintended consequences of crypto taxation.</p> 
<p>India’s approach to cryptocurrency regulation is evolving, with a clear shift towards international cooperation and alignment with IMF-FSB guidelines. While the crypto industry faces challenges, including tax-related issues, the global conversation surrounding crypto regulation is gaining momentum, promising significant developments in the coming months.</p> 
<p> Read more: <a href="https://crypto.news/india-probes-betting-platforms-for-crypto-tax-evasion/" rel="noopener noreferrer nofollow"> India probes betting platforms for crypto tax evasion </a> </p>

India considers regulating crypto with IMF-FSB guidelines

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