New Delhi,UPDATED: Apr 3, 2023 16:56 IST
By India Today Web Desk: The first-ever G20 summit to be hosted in South Asia will be held in Delhi, India. With 20 intergovernmental bodies, G20 comprises 19 countries and the European Union (EU). As it meets to work on issues related to the global economy, crypto will also be an integral topic of discussion in this gathering.
Apart from vital discussions around international financial stability, crypto will receive suggestions around its regulations and policy frameworks. Finance Minister of India, Nirmala Sitharaman, confirmed that G20 nations are forming an effective Standard Operating Procedure (SOP) during this time.
With India’s evolving stance on cryptocurrencies and the newly launched CBDC pilot, the nation has displayed a systematic approach to regulating the evolving space.
“India’s consistent growth in adapting to cryptocurrencies and forming newer policies around it has made it a hub for tech investments. With more development and policy framework, we can expect higher mass adoption. The G20 summit will be bullish for crypto’s growth in India,” said Gracy Chen, the managing director at Bitget.
In 2022 Budget discussions, a heavy 30% tax on capital gains and a 1% tax on TDS were levied on Crypto. Currently, cryptocurrencies are considered an asset class of premium investment products with high volatility. The government has implied a 30% tax on all income/gains earned on all digital assets. Tax is charged on the conversion of crypto to INR with previous historical records tracked. Along with this, a 1% TDS (Tax Deducted at Source) is applied on each and every transaction. This was viewed as a trial framework as the crypto space in India anticipates more leniency.
Additionally, India released two CBDC pilots by the central bank RBI. A wholesale CBDC pilot, in collaboration with nine banks, and a retail CBDC pilot launched in Dec. in four cities – Mumbai, New Delhi, Bengaluru and Bhubaneswar.
“Discussions around cryptocurrency policy frameworks accelerate the possibilities of mass adoption in a region. With over 750 million internet users, India holds the potential to not just pilot but establish real-life crypto and blockchain use cases for the masses,” adds Chen.
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