FM Sitharaman Urges IMF To Play Lead Role In Crypto Regulation

Amid debates and discussions around crypto regulation, Finance Minister Nirmala Sitharaman has urged the International Monetary Fund (IMF) to take lead in the issue. The minister has called for a global coordinated and synchronised approach on the crypto assets regulation.

On Wednesday, Sitharaman discussed the matter during a meeting with the IMF managing director Kristalina Georgieva in New Delhi, the ministry shared in a tweet.

“The IMF stands ready to work with the Finance Ministry of India on climate change, crypto regulation and other global challenges of our times,” Georgieva said in a tweet.

Georgieva also stated that despite the global uncertainty and headwinds, India continues to be a bright spot in the global economy, the ministry added.

Among other issues, the minister emphasised the importance of timely conclusion of 16th General Review of Quotas GRQ) in a way that addresses inequality and imbalances in the global economy.

Sitharaman also reiterated the importance of coordinated policy measures and multilateralism for mobilising adequate financial resources for climate action. Committed funds by the developed economies is yet to become available, she noted. 

This is not the first time when Sitharaman has called for a global coordinated approach for crypto regulation. Earlier this year, during her bilateral talks with Georgieva in Washington DC, the minister had also talked about crypto regulation. 

Back then, she had also raised concerns on harmful uses of cryptocurrency inclujding money laundering and terror funding. 

“Regulating cannot be done by a single country within its terrain through some effective method, and for doing it across borders, technology does not have a solution which will be acceptable to various sovereigns and, at the same time, is applicable within each of the territories,” Sitharaman said.

Meanwhile, India has introduced taxation rules for crypto transactions. For example, the 30% tax on income from crypto transactions came into effect on April 1, 2022, and later the country has implemented a 1% TDS rule on such transactions from July 1, 2022. 

Notably, crypto exchanges in India remain under high level of scrutiny. Last month, the Enforcement Directorate (ED) froze crypto exchange WazirX’s bank assets worth INR 64.67 Cr in connection with a money laundering case. Later, it also froze assets worth INR 370 Cr lying with Flipvolt Technologies, the Indian entity of crypto startup Vauld.