Need global collaboration to regulate cryptos: Modi

What is the news?

Indian Prime Minister, delivered the keynote at the inaugural Sydney Dialogue via video conferencing. He spoke on the theme of India’s technology evolution and revolution and new age digital tech like cryptocurrencies.

Indian PM called for countries to collaborate for regulating cryptocurrencies to prevent any harmful impact on youth. The reference to bitcoins comes days after a Parliament committee discussed ways to ensure safety of bitcoins.

The Centre is also deliberating on a taxation framework for the Cryptocurrency sector.

What are the five important transitions taking place in India?

Indian PM listed five significant transitions happening in India currently:

One, the world’s most extensive public information infrastructure being built in India i.e. UPI and Aadhaar

Two, use of digital technology for governance, inclusion, empowerment, connectivity, delivery of benefits and welfare.

Three, India has the world’s third largest and fastest growing Startup Eco-system.

Four, India’s industry and services sectors, even agriculture, are undergoing massive digital transformation.

Five, India is investing in developing indigenous capabilities in technology such as 5G and 6G, Cloud platforms and cloud computing. It is one of the leading nations in artificial intelligence and machine learning, especially in human-centered and ethical use of artificial intelligence.

The Sydney Dialogue is an annual summit of cyber and critical technologies to discuss the fallout of the digital domain on the law and order situation in the world.
What is being planned wrt regulation of Cryptocurrency?

The issue of regulatory gaps is being discussed in meetings involving the Government and regulators such as the Reserve Bank of India (RBI).

For holders and traders of digital currencies, deliberations are underway to explore the possibility of imposing short-term and long-term capital gains tax.

For service providers in the cryptocurrency ecosystem, the option of imposing GST at the rate of 18%, is being explored.

A key aspect being considered is the definition of a brokerage to include entities that undertake or facilitate digital asset trades. This would include practically all cryptocurrency exchanges.

Govt could introduce something like the accredited investor concept in crypto investment, where somebody with a specified minimum annual income is allowed to invest in certain asset classes,

There have been suggestions that cryptocurrencies in India should be regulated by SEBI, with RBI monitoring their inward and outward movements in the country.

Source: This post is based on the following articles:

Need global collaboration to regulate cryptos: Modi‘ published in Livemint on 19th Nov 2021.

Centre works on tax framework to regulate cryptocurrencies published in Indian Express on 19th Nov 2021.

PM delivers keynote address at The Sydney Dialogue, speaks on India’s technology evolution and revolution‘ published in PIB on 19th Nov 21.

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