India Develops Five-Point Crypto Regulatory Framework Following IMF-FSB Recommendations

India Develops Five-Point Crypto Regulatory Framework Following IMF-FSB Recommendations

India is actively working on a crypto regulatory framework, which is expected to materialize into legal legislation in the coming five to six months. This development follows the joint recommendations of the International Monetary Fund (IMF) and the Financial Stability Board (FSB), which India and other G20 nations have embraced.

A Global Approach to Crypto Regulation

Sidharth Sogani, the CEO of Crebaco, a firm that has collaborated with government agencies and ministries, revealed that the Indian government is crafting a five-point crypto legislative framework with a global perspective. This initiative comes after India’s successful participation in the recent G20 summit, where significant economic announcements were made, including the welcoming of the IMF-FSB crypto regulatory guidelines by India and other G20 countries.

The IMF-FSB recommendations advocate for the regulation of the crypto market instead of imposing a blanket ban. These guidelines offer a roadmap that G20 countries can follow to create independent yet collaborative crypto legislations.

Insights into India’s Crypto Strategy

Crebaco, a blockchain analytic firm that has consulted for several G20 committees and nations, shared insights into India’s approach to crypto regulation. According to Sogani, the Indian government is focusing on the following aspects in its five-point regulatory framework:

  1. Implementing advanced Know Your Customer (KYC) protocols for crypto companies, aligning with the Foreign Account Tax Compliance Act and existing Anti-Money Laundering standards.
  2. Mandating crypto platforms to provide real-time proof-of-reserve audits to regulators.
  3. Establishing a uniform taxation policy across nations.
  4. Potentially granting crypto exchanges a status akin to authorized dealers, similar to banks, under the Reserve Bank of India (RBI) guidelines.
  5. Requiring key positions such as Money Laundering Reporting Officer for crypto platforms.
    Sogani emphasized that the global realization that banning crypto is not a viable solution has led many nations to opt for a regulatory approach instead. He noted that proper regulations could foster substantial growth in the already robust crypto ecosystem while minimizing the risks of scams and illicit activities.

A Collaborative Future

India has been advocating for a collaborative approach to crypto regulations globally. Prime Minister Narendra Modi echoed this sentiment at the G20 summit, emphasizing the need for global cooperation, especially in areas like crypto taxation.

An executive from the finance ministry confirmed that the government is considering the IMF-FSB recommendations as a foundational framework to build upon in the coming months. The official also dismissed the option of banning cryptocurrencies, highlighting the challenges of enforcing such a ban when other countries are moving towards regulation.

Currently, India does not have specific crypto regulations, although a 30% tax on crypto gains was introduced in 2022. The recent developments and the finance ministry’s positive outlook indicate a promising future for the crypto industry in India, with substantial legislation possibly emerging in the near future.

Latest News

India Develops Five-Point Crypto Regulatory Framework Following IMF-FSB Recommendations

India Develops Five-Point Crypto Regulatory Framework Following IMF-FSB Recommendations

India is actively working on a crypto regulatory framework, which is expected to materialize into legal legislation in the coming five to six months. This development follows the joint recommendations of the International Monetary Fund (IMF) and the Financial Stability Board (FSB), which India and other G20 nations have embraced. A Global Approach to Crypto

Shorts' Sudden Exit: The Tale of $100 Million and the Fading Bears

Shorts’ Sudden Exit: The Tale of $100 Million and the Fading Bears

Cryptocurrency, often hailed as the financial frontier, is a realm where fortunes can pivot dramatically within mere moments. One such seismic shift recently rocked the crypto community: an eye-watering $100 million in crypto shorts vanished in thin air. This occurrence not only emphasizes the capricious nature of the crypto world but also sheds light on

Asia's Emergence as the Next Global Crypto Hub

Asia’s Emergence as the Next Global Crypto Hub

Asia has quietly been building momentum that poises the region to become the dominant force in the global cryptocurrency landscape. Various indicators point to Asia’s accelerating leadership when it comes to crypto adoption, regulation, innovation and activity.   TL;DR:   Asia is seeing a surge in crypto trading volumes as activity moves East. Major cryptocurrency

Ethereum Futures ETFs: Bitwise and VanEck Lead the Way

Ethereum Futures ETFs: Bitwise and VanEck Lead the Way

In the dynamic realm of cryptocurrency, Ethereum has consistently been a beacon of innovation. But as the crypto landscape matures, it’s no longer just about purchasing and holding Ether. The investment horizon is broadening, with groundbreaking financial products coming to the fore. One such innovation is Ethereum Futures ETFs, offering a novel way to invest

Why Claims That "NFTs Are Worthless" Are a Passing Fad

Why Claims That “NFTs Are Worthless” Are a Passing Fad

As the market slumps and fears of a recession continue to loom, NFTs have faced heightened criticism as being an overhyped internet fad. Even Rolling Stone (who once partnered with BAYC) is claiming “Your NFTs Are Actually — Finally — Totally Worthless“. With prices declining from 2021 highs, many are quick to call NFTs a

Skeletor’s Digital Revival: VeeFriends & Mattel’s NFT Collab

Skeletor’s Digital Revival: VeeFriends & Mattel’s NFT Collab

Mattel and Gary Vaynerchuk’s VeeFriends are releasing a toy mashup of Masters of the Universe Skeletor and VeeFriends Skilled Skeleton. The $45 collectible has interchangeable parts and launches on Oct. 6, merging two iconic brands.   TL;DR: Gary Vee is teaming up with Mattel for a toy mashup of Skeletor and VeeFriends character Skilled Skeleton.

MicroStrategy Acquires $147M More Bitcoin, Totals 158K BTC!

MicroStrategy Acquires $147M More Bitcoin, Totals 158K BTC!

In a world where digital currencies are rapidly reshaping the financial landscape, MicroStrategy, a renowned business intelligence firm, has once again made headlines with its latest acquisition of Bitcoin. The company’s unwavering faith in the cryptocurrency has sent ripples across the market, signaling a bullish stance that is hard to ignore.   A Bold Move

0
Would love your thoughts, please comment.x
()
x