Indian Finance Minister Emphasizes Crypto Assets for Trading and Speculation, Not Currency Use
The Indian government remains steadfast in its position on cryptocurrency, despite Bitcoin reaching a record high above $72,000. According to Finance Minister Nirmala Sitharaman, crypto assets are suitable only for trading and speculation, and cannot function as currencies. The government maintains that currencies should be issued by the fiat of the government or central bank. While crypto remains unregulated in India, Sitharaman believes it is important to raise the issue at the G20 forum.
Indian Finance Minister Warns of Global Crypto Regulation Gap
Sitharaman explained that India is waiting for a larger-level framework for crypto regulation due to concerns about potential loopholes for illicit activities. The government fears that if one country implements regulations while others do not, it may create opportunities for money laundering, drug financing, or terrorism support. To address this, India is advocating for discussions on crypto regulation at the G20 level. Prime Minister Narendra Modi first expressed support for a global regulatory framework during the B20 summit in August. Sitharaman believes that international collaboration is crucial to ensure effective and coordinated policies.
India’s Crypto Market Thrives Despite Tax Challenges
Despite facing challenges such as high taxes on gains (30%), India’s attitude towards cryptocurrencies is changing. Indian residents managed to accumulate over $1 billion in estimated gains last year, according to Chainalysis data. Additionally, India emerged as the world’s second-largest crypto market in 2023, with transactions exceeding $250 billion.
Hot Take: India Stands Firm on Crypto Assets as Trading Instruments
The Indian Finance Minister’s recent statements reaffirm the government’s stance on cryptocurrency. While Bitcoin continues to break records globally, India remains cautious about its use as a currency. The government believes that crypto assets are suitable only for trading and speculation, emphasizing the need for a global regulatory framework to prevent illicit activities. Despite tax challenges, India’s crypto market is flourishing, demonstrating the growing interest and adoption of digital assets in the country.
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