India finalizing consultation paper on cryptocurrency: Economic Affairs Secretary
Economic Affairs Secretary Ajay Seth said there is a need to build a global consensus on cryptocurrencies and India will look at the rules applicable in other countries before deciding how it will be regulated. He said inputs from various stakeholders and institutions, including the World Bank and the IMF, have been included in the consultation paper which will be released soon.
Underlining the need for a global response, he said, “We have consulted not only domestic institutional stakeholders but also organizations such as the World Bank and the IMF. Therefore, we hope to be in a position to finalize our consultation paper soon.” Will be.” To deal with issues related to cryptocurrencies as they operate in the virtual world.
He said that India has also started working on some kind of global rules. “Countries that have banned can’t succeed unless there is a global consensus around it. There has to be a broad framework of partnerships. Digital assets, the way we want to deal with those assets, have a broader scope. There has to be a framework on which all economies have to live together. No country can choose any position. We need a global consensus on crypto regulation,” Seth said.
In the Union Budget presented earlier this year, Finance Minister Nirmala Sitharaman had introduced a flat 30 per cent tax in cryptocurrencies and related assets such as non-fungible tokens (NFTs) and one per cent tax deducted at source (TDS). when such a transaction takes place.
There are an estimated 15 million to 20 million crypto investors in India, with total crypto holdings of approximately USD 5.34 billion. There is no official data available on the size of the Indian crypto market.
Meanwhile, Bitsair exchange founder Kunal Jagdale said the government may hold a consultation paper in August and “we are waiting for more clarity from the horse’s mouth”.
“We are hoping that the government will look after and nurture the industry as India has the potential to become a global crypto super power,” Jumal said.
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