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India on Thursday prioritized developing a framework for global regulation of unbacked cryptoassets, stablecoins and decentralized finance under the ongoing G20 presidency, a move that has the potential to be huge for the nascent industry. It said it may seek to “ban” them in setbacks.
India started its one-year presidency of Group 20 earlier this month. This group of 19 countries on the continent and her EU accounts for 85% of the world’s GDP. We also invite non-member countries such as Singapore and Spain, as well as international organizations such as the World Bank and the IMF.
India’s central bank, the Reserve Bank of India, said in a report today that crypto-assets are highly volatile and stocks in a way that challenges industry narratives and claims that virtual digital assets are an alternative source of value. said to show a high correlation with Their supposed inflation hedging advantage.
India’s central bank has said policymakers around the world would like to see the crypto sector more interconnected with mainstream finance and “divert funding away from traditional finance by having a broader impact on the real economy.” warned that he was concerned about
The Central Bank of India is one of the most vocal critics of the cryptocurrency industry. RBI Governor Shaktikanta Das warned last week that unless the use of private cryptocurrencies is banned, it will trigger the next financial crisis.
“The so-called change in value of a product is a function of the market. But our main concern with crypto, unlike other assets and products, is that it has no basis. , I think cryptocurrencies or private cryptocurrencies are a fashionable way to express otherwise 100% speculative activity,” he said at the conference.
Das said the origins of cryptocurrencies lie in the idea of bypassing or subverting the existing financial system. “They don’t believe in central banks, they don’t believe in a regulated financial world. He added that he held the view that it should be prohibited.
India is one of the countries taking a strict approach to cryptocurrencies. Earlier this year, the company began taxing cryptocurrencies, and on profits he imposed a 30% tax and a 1% deduction for each cryptocurrency transaction.
Alongside the market downturn, the country’s move has also significantly depleted the transactions processed domestically by local exchanges Coinswitch Cooper, backed by Sequoia India and Andreessen Horowitz, and Pantera-backed Coin DCX. rice field.
Changpeng “CZ” Zhao, founder and CEO of the world’s largest cryptocurrency exchange Binance, said in a recent interview with TechCrunch that the company sees India as a “very crypto-friendly environment.” Said he didn’t see it. He said the company is trying to communicate its concerns to local authorities about local taxation, but argued that tax changes usually take a long time.
“Binance goes to countries where regulations favor cryptocurrencies and businesses. hmm,” he said.
Coinbase, which backs both CoinDCX and CoinSwitch Kuber, launched a cryptocurrency platform in the country earlier this year but quickly scaled back its offerings amid regulatory fears. Coinbase co-founder and CEO Brian Armstrong said the company disabled support for Coinbase’s local payment infrastructure UPI in May. [central bank] Reserve Bank of India. ”
With over 600 million connected users, India is the second largest internet market in the world. Home to one of the world’s largest startups his ecosystem, the country has attracted more than $75 billion of his investments from Google, Meta, Sequoia, Lightspeed, Tiger Global and others over the past decade.
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