Indian Finance Minister Nirmala Sitharaman says that the country’s crypto policy will not be rushed. “Our intention is in no way to hurt the ecosystem, or to even say that we don’t need it,” she added.
Indian Crypto Regulations: Finance Minister
India’s finance minister, Nirmala Sitharaman, discussed cryptocurrency regulation Wednesday at a fireside chat organized by Stanford University School of Medicine.
She explained that India will not rush to finalize the country’s crypto policy. She stated that India would make an informed decision only after having had discussions with multilateral forums, as reported by the Mint.
Sitharaman admitted that blockchain technology has the potential to improve India’s economy. “Blockchain is full of potential not just in the payments arena but also in many others,” she described, adding:
Our intention is in no way to hurt the ecosystem, or to even say that we don’t need it, but to define for ourselves how we need them and in what ways their growth should be facilitated and how we are going to handle it.
However, the finance minister also emphasized that “it also can be manipulated for not so desirable ends — whether it is money laundering or leading to financing terror.”
These are worries for all countries and not only India, according to the finance minister. She stated:
This process must be slow for everyone to feel confident that we have made a well-informed decision. It can’t be rushed.
Officials from the Indian Finance Ministry have met with representatives of international organisations, such as the International Monetary Fund and the World Bank. IMF Managing Director Kristalina Georgieva said last week that India is “on the frontline of digital currencies, especially central bank digital currency and how it handles a reduction of risk from crypto assets for the Indian people and businesses.”
While the Indian government is working on the country’s crypto policy, crypto income is taxed at 30%. All crypto transactions will be subject to a 1% tax deduction at source (TDS), effective July 1.
What do you think about the Indian finance minister’s comments regarding cryptocurrency regulation? Comment below.
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