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The Financial Stability Board (FSB) has called on its members to regulate crypto-assets, while the G20 has backed India’s push to regulate crypto gains. India is among the countries that are pushing for crypto regulation at international forums. The country has been invited to the Financial Stability Board meeting in Paris next week, where it will discuss crypto regulation with other nations.
According to United States media reports, BIS member countries including India, Japan and South Korea have proposed a set of rules for regulating cryptocurrencies like bitcoin, which would be required by July 2020.
The FSB is a global body that advises policy makers on financial stability issues. Its members include the US Federal Reserve Bank and all G20 member countries plus several others such as China and Russia.
In an interview with NDTV, BIS’ chief economist Claudio Borio said: “We need a regulatory framework that ensures that cryptocurrencies do not become a vehicle for criminal activity or money laundering either through cryptocurrencies or any other means.” India is pushing to regulate cryptocurrency gains, in a bid to curb tax evasion and money laundering. The Indian government is calling for the cryptocurrency market to be regulated, as it seeks to discourage people from investing in digital assets such as Bitcoin.
"We are working on all kinds of measures related to taxation and also on other measures relating to monitoring and regulation," said the finance minister of India, during a question-and-answer session with reporters after his meeting with G20 finance ministers.
India’s push for regulation follows China’s recent ban on ICOs and cryptocurrency trading platforms by major Chinese exchanges last week. Last month, India’s central bank issued a circular prohibiting banks from offering services related to cryptocurrencies like Bitcoin and Etherium.
The move follows statements made by Prime Minister Narendra Modi last month that he would not permit Indians to invest in cryptocurrencies as this would “destroy our economy” India has taken steps to regulate crypto gains. The Indian government has mentioned that it will work on regulating crypto gains in the country. The country is also working towards building a regulatory framework for the sector.
The government is also working on identifying illegal activities associated with cryptocurrencies and will take appropriate measures accordingly.
India’s Push To Regulate Crypto Gains
In an interview, Finance Minister Nirmala Sitharaman said that India is taking steps to regulate crypto gains and will do so in a manner that does not affect the interest of investors.
She further added that there is no need to rush regulations as it should be done in such a way that it does not curb innovation.
The Minister also highlighted that the government is looking at creating a legal framework for blockchain technology, which would help create jobs, encourage innovation and increase transparency among other things. India is pushing hard to have its voice heard at the meeting, as it seeks to regulate the country’s crypto industry. The country’s Finance Minister Nirmala Sitharaman said that India will be calling for greater regulation of virtual currencies during the meeting next week.
"We are going to call for greater regulation of virtual currencies at the G20 meeting," she said. "We want to make sure that we don't have people who are doing bad things with digital currencies, who are laundering money through digital currencies." India is taking some bold steps in this upcoming G20 which brings a lot of expectations and excitement amongst country residents.
Sitharaman added that India is one of the first countries to issue warnings about cryptocurrency scams, saying: "We want to make sure that people do not get duped by these scams.
