India\u2019s progress on global cryptocurrency governance remains stagnant despite holding the Group of 20 (G20) presidency for nine months, former finance secretary Subhash Chandra Garg<\/a> told Forkast<\/em>.<\/p>\n \u201cThe situation regarding global governance and regulation of cryptocurrencies and the other decentralized digital assets is practically at the same stage at which it was when India assumed the G20 presidency. So not much has happened and this is likely to be the case for quite some time,\u201d said Garg.\u00a0<\/p>\n India commenced its G20 presidency in December 2022 and will pass the mantle to Brazil at the end of November 2023. Throughout its Presidency, several top government officials, including India\u2019s finance minister<\/a> and prime minister<\/a>, have said several times that a common global regulatory framework needs to be put in place.\u00a0<\/p>\n The G20 discussions are significant since India has long viewed digital assets with suspicion. The Indian cryptocurrency and blockchain industry had been hoping the world\u2019s biggest democracy<\/a> would address the new asset class with clearer regulations, using the opportunity during its G20 presidency<\/a> to work with other countries.\u00a0<\/p>\n Amitendu Palit, a senior research fellow at National University of Singapore\u2019s Institute of South Asian Studies, pointed out the inherent limitations of the G20\u2019s mandate.<\/p>\n \u201cThe G20 is not empowered to make binding regulations. It can, at best, provide policy suggestions and policy directions for global adoption. Regulations would have to be implemented by members themselves,\u201d Palit told Forkast<\/em>.<\/p>\n In August, India\u2019s crypto regulatory note<\/a> proposed global crypto regulations, but crucial details remain vague, leaving crypto market participants in the world\u2019s most populous nation <\/a>in the lurch. Despite calls for a unified global framework from top Indian officials, including Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, tangible progress remains absent.\u00a0<\/p>\n Garg\u2019s prognosis for India\u2019s crypto roadmap is bleak, especially with the country\u2019s G20 presidency nearing its conclusion.\u00a0<\/p>\n \u201cThe finance ministers, who were handling cryptocurrencies, already had its last meeting [in July] and there was no consensus on doing anything regarding governance of cryptocurrency,\u201d Garg said. \u201cThe government has been taking measures which have diminished or hurt the industry. So I don\u2019t think the government is favorably disposed towards [cryptocurrencies].\u201d<\/p>\n India\u2019s crypto tax policy, which includes a 30% flat tax<\/a> on crypto earnings and a 1% tax deducted at source<\/a> on substantial trades, coupled with penalties ranging from financial fines to potential imprisonment, has significantly impacted its crypto industry.<\/p>\n I don\u2019t think blockchain can develop without a very positive regulatory structure and legal regime in respect of crypto and Web3<\/p>\n India\u2019s former finance secretary Subhash Chandra Garg<\/cite><\/p><\/blockquote>\n \u201cWe don\u2019t expect any free rides from the government, but we expect the government to be a little bit more fair. And I think that will happen over a period of time. We could debate whether it is happening at a rapid pace. Things could be better, no doubt, but things could be a lot worse also,\u201d Rajagopal Menon, vice president of Indian crypto exchange WazirX, told Forkast.<\/em><\/p>\n A study<\/a> from Esya Centre, an Indian policy think tank, revealed that the prevailing tax regime might lead to a loss of about US$1.2 trillion in trade volume on domestic exchanges over the coming four years. Following the imposition of stringent tax<\/a> measures in February 2022, approximately US$3.85 billion has already migrated to overseas platforms, as of October last year.\u00a0<\/p>\n Finance Minister Sitharaman has said that blockchain technology<\/a> has its own uses and potential, and that India is not against the technology. She also sees<\/a> 46% growth in blockchain technology use in the next few years, but cautioned that [crypto]currencies have to be monitored by either the government or the central bank.<\/p>\n \u201cThese statements that \u2018blockchain is fine but cryptocurrency is not,\u2019 these are contradictory terms. I don\u2019t think blockchain can develop without a very positive regulatory structure and legal regime in respect of crypto and Web3,\u201d Garg said.<\/p>\n![\"india](\"https:\/\/forkast.news\/wp-content\/uploads\/2023\/09\/india-gate-new-delhi-india-2022-11-14-01-59-59-utc-1260x840.jpg\" "\\"India\u2019s")
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