India’s PM advocates global ethical framework for crypto, AI

Indian Prime Minister Narendra Modi during a joint press conference with U.S. President Joe Biden at the White House on June 22, 2023 in Washington, DC. Image: Win McNamee/Getty Images

India’s Prime Minister Narendra Modi emphasized on Sunday the need for a global framework to regulate cryptocurrencies, ensuring the interest of all stakeholders. He further stated that a similar approach is essential for the governance of artificial intelligence (AI). 

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Fast facts

• “With time, we have to face issues that we couldn’t even think of 10-15 years ago. For instance, cryptocurrency-related challenges,” Modi said while at the Business 20 (B20) summit in India. 
• The B20, a part of the Group of 20 (G20) summit, serves as a platform for the international business community to present unified views. Currently, India holds the presidency of the G20. 
• Modi also said that global business communities and governments need to come together to ensure that “ethical” AI is put in place.
• “The world is showing a lot of excitement around AI. But even in this excitement we need to look at some ethical considerations,” Modi said. With skilling and re-skilling, concerns are being raised around algorithm bias and the way it can affect society, he added. 
• The world’s most populous nation, known in the Web3 industry for its cautious stance on cryptocurrency trading, released a note suggesting a roadmap for a global crypto assets framework earlier this month. India’s proposal aligns with guidelines provided by the Financial Stability Board and the International Monetary Fund. 
• India imposes a 30% flat tax on crypto income and a 1% tax deducted at source (TDS) on crypto trades above 10,000 Indian rupees (US$121). Furthermore, the country does not allow crypto traders to offset losses against profits. Penalties include an amount equivalent to TDS for non-deduction, a 15% annual interest for late payment, and a potential jail term of up to six months.