Indian Finance Minister Nirmala Sitharaman says the country’s crypto policy will not be rushed. “Our intention is not to harm the ecosystem in any way, or even to say that we don’t need it,” she added.
Finance Minister on Indian Crypto Regulation
Indian Finance Minister Nirmala Sitharaman discussed cryptocurrency regulation on Wednesday in a fireside chat hosted by the Stanford University School of Medicine.
He explained that India will not rush to finalize the country’s crypto policy. Rather, she said India will make an informed decision after due deliberations in multilateral fora, the Mint reported.
Sitharaman admitted that blockchain technology has the potential to improve India’s economy. “Blockchain is full of potential not only in the payment realm, but also in many others,” she described, adding:
Our intention is in no way to harm the ecosystem, not even to say that we do not need it, but to define for ourselves how we need it and how its growth should be facilitated and how we are going to manage it.
However, the finance minister also emphasized that “it can also be manipulated for less than desirable purposes, be it to launder money or to finance terrorism”.
The finance minister noted that these are concerns of many countries, not just India. She opined:
You have to take your time so that we can all be sure that at least given the available information we are making an informed decision. It can’t be rushed.
Officials from the Indian Ministry of Finance have been consulting with international organizations, including the International Monetary Fund (IMF) and the World Bank. IMF Managing Director Kristalina Georgieva saying last week that India is “at the forefront of digital currencies, especially the central bank digital currency and how it manages a de-risking of crypto assets for Indian individuals and businesses.”
While the Indian government is working on the country’s crypto policy, crypto income is taxed at 30%. On July 1, a 1% tax deducted at source (TDS) will begin to be levied on all crypto transactions.
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