India’s G20 Meet to hold discussions on Crypto Regulations, Says Sitharaman

Carrying forward the tax revisions from the Union Budget 2022, the Indian community has been looking forward to some more clarity on the crypto regulations during this year’s Union Budget. However, the ‘Virtual Digital Assets‘ have not been a point of discussion. That is till our Honourable Finance Minister, Nirmala Sitaraman answered to a question regarding the same during the Question Hour in Lok Sabha on February 13, 2023. Sitaraman said, “In the G20, we’re raising it & having detailed discussions with members so that a standard operating protocol emerges which results in a coherent, comprehensive approach where all countries work together in bringing some regulation.”

In the G20, we’re raising it & having detailed discussions with members so that a standard operating protocol emerges which results in a coherent, comprehensive approach where all countries work together in bringing some regulation.

– Smt during Question Hour in LS. (2/2)

— NSitharamanOffice (@nsitharamanoffc) February 13, 2023

The G20 Summit has been an interesting topic for various reasons regarding the economy of the world. Every year a different member of the group hosts the G20. This year the premier forum for international economic cooperation is being hosted by India from December 1, 2022 to November 31, 2023!

Read More: Guide To Crypto Tax In India 2023

The G20, which stands for Group of Twenty includes the following countries ; Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the U.K., the U.S., and the European Union. The members of G20 represents around 85% of the global GDP, about a little more than 75% of the global trade, and almost two-thirds of the world population.

While the questions about crypto and its adoption for India was asked in a question during the Question Hour at Lok Sabha, Sitharaman went on with her answer and said that since the whole phenomenon, be it crypto mining, asset or transaction; is based on technology, one country’s  standalone effort to control and regulate it will not be able to bring a solution for the whole space.

Whether it’s the crypto mining, asset or transaction, we recognise that it’s completely driven by technology and a standalone country’s effort in controlling & regulating it is not going to be effective.

– Smt @nsitharaman during Question Hour in Lok Sabha. (1/2) pic.twitter.com/vZT9kCCSA1

— NSitharamanOffice (@nsitharamanoffc) February 13, 2023

A lot to anticipate for the crypto community worldwide as the G20 meet unfolds and moves ahead with their said agenda. As for the Indian crypto community, even though India does not have a cumulative regulatory framework for crypto in place, the government has introduced a few taxing rules for the ‘virtual digital assets’. There is a 30% tax on all crypto gains or income along with a 1% TDS or tax deducted at source on crypto transactions.

India’s Ministry of Finance, back in October 2022 during the G20 Finance Ministers and Central Bank Governors meeting, had asked for an “effective tax reporting regime and information exchange between jurisdictions for crypto assets to combat offshore tax evasion.”

Additional Read: Save Taxes On Crypto Gains In India

As for the use cases on the digital currency that the RBI has been working on for a while, Sitaraman said, “Several sandbox mechanisms have been created to test & after understanding on how use of digital currency will have spillovers, action has to be planned.”

RBI has launched a pilot of retail & wholesale use of digital currency. Several sandbox mechanisms have been created to test & after understanding on how use of digital currency will have spillovers, action has to be planned.

– Smt @nsitharaman during Question Hour in Lok Sabha. pic.twitter.com/lp1lEL0GLx

— NSitharamanOffice (@nsitharamanoffc) February 13, 2023

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