IMF and US Back India Plans for Global Crypto Regulation

IMF and US Back India Plans for Global Crypto Regulation
Source: AdobeStock / Maksym Yemelyanov

The US-based International Monetary Fund has shown support for India’s plan to put global regulation on crypto.

India, currently chairing the G20, has been pushing for a joint global effort to regulate the growing crypto industry and mitigate its potential risks.

At the last G20 meeting on Saturday, India’s finance minister held a seminar for member states to share their concerns about the risks of crypto.

Janet Yellen told Reuters that there is a need to establish stronger regulation, but that there are no plans to ban any cryptos or companies.

“We are not advocating a total ban on crypto activities, but putting a strong regulatory framework in place is critical. We are working with other governments.”

The IMF thought a little differently. IMF Director Kristalina Georgieva said after speaking with India’s finance minister that she thought banning crypto should be an option.

The Reserve Bank of India has long taken a tough stance on digital currencies because the emerging asset class lacks fundamental value. The central bank has long been warning investors and the government about crypto because crypto is a volatile asset and prone to fraud and scams.

Earlier this year, India’s central bank director Shaktikanta Das said crypto has no underlying asset. He claims that cryptos are not even worth more than a tulip. It was a reference to the Dutch tulip craze at the turn of the last century.

Despite calls from the central bank to ban crypto, the Indian government has only discussed drafting legislation to regulate crypto. In July 2022, the Indian government said that global cooperation is necessary to establish effective regulation or a ban on crypto.

India’s crypto industry is struggling with new tax laws

India’s high-profile crypto tax plans, including a 30% tax on crypto income, have negatively impacted trading volumes on local crypto exchanges.

According to a study conducted by Eswa Center, Indian crypto investors traded as much as $3.8 billion from local exchanges to international exchanges after the government unveiled their crypto tax plans.

“Of these, an incremental amount of $3.055 million was disbursed within six months of the current financial year.” A report emerged that “17 lakh users” switched from domestic exchanges to forex in the last year.

New pre-sales for 2023 are promising

The crypto market looks set to take off in 2023 and is not yet worried about the regulation that is in place now. One of the most promising cryptocurrencies at the moment is Fight Out, which is performing very well. Fight Out is now building a move-to-earn platform for the fitness industry, and it’s been very successful.

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