US and IMF buy into India’s crypto regulation talks

India’s efforts to regulate cryptocurrencies have received support from the International Monetary Fund (IMF) and the United States.

Reuters reported that India, the current president of the Group of 20 (G20) bloc, received decisive support during the meeting of the finance chiefs of the countries of the blocs.

India has long called for global regulation of cryptocurrencies. It now plans to use its position as head of the G20 to achieve that. The country’s Ministry of Finance has already held a seminar for all members of the G20 on how to develop a single set of regulations.

India’s attitude towards crypto

While global regulation may be a good idea, having India at the forefront could cause alarm for the nascent industry. The Indian government has long discussed a law banning or at least regulating cryptocurrencies.

Although there is no final government position yet, the Reserve Bank of India believes that cryptos should be banned because they resemble Ponzi schemes.

Meanwhile, India already has several policies in place that seem anti-crypto. These include 1% tax on each selling crypto transaction and 30% capital gains tax. All these policies are already having clear effects on the Indian crypto industry.

IMF calls for more regulation

But it seems others may also share a similar view. The IMF, a long-term critic of cryptocurrencies, also shares this view. Its CEO, Kristalina Georgieva, said after a meeting with India’s finance minister that banning crypto should be an option.

The financial organization recently released its nine-point action plan for how countries should treat crypto. One of the points suggested that countries should not make digital assets their legal tender.

According to the action plan, this is necessary given the collapse of several crypto exchanges and billions lost in one asset over the years.

The US also sees more regulation

Meanwhile, US Treasury Secretary Janet Yellen said that while the country has not proposed an outright ban yet, it is important to have a regulatory framework for crypto. The United States cooperates with other governments for this.

While a ban on crypto-assets is not the government’s position in the United States, several regulators and lawmakers support such bans.