The G20 summit is one of the biggest international events where 21 countries participate to discuss various global topics. The agenda for this event is quite big and some of the topics are discussed can also bring better regulations for the countries who participated in the Summit. This is called G20 because 20 countries participated in the event but now this has become 21 countries altogether as Africa is also added to the group. this event has been happening in in India from 9th to 10th September 2023.
It was expected that India is going to discuss the cryptocurrency topic in this event as they have been talking about it for some time. india has been pushing for the global framework and they expect more countries to come forward to discuss this further and come on the same page.
I just read a news article (link shared below) and this is a nice one which I recommend you to read and watch the video. There is a lot of information that you can find useful and if you are from India then I highly recommend you go through it.
G20 Summit: How crypto assets will be regulated? IMF's Gita Gopinath explains new framework
“We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard]. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions,” stated a consensus declaration signed by G20 leaders.
By now its clear that India is trying to get a global consensus on crypto regulation and it seems that they will be successful. Regulation is good provided they are built with the thought that they are going to strengthen the industry by building rules that are good for crypto exchanges and users.
This also highlighted that there is no discussion about banning cryptocurrency in the country which is good and it was expected that the country is moving towards a different direction and banning is certainly not on their list anymore. it is good because now the country must be trying different ways to provide scalable solutions while this will also be a segment for them to generate some revenue through taxation. The current tax structure is not good at all and it is billed with some random thoughts which is not helping the community anyway and is destroying it. Putting a slab tax rate with a higher percentage is not a reasonable approach and the offset of loss is another weapon that they have used to destroy it but looks like now things are going to be in a better state.
It is too early to expect something after this discussion unless clear guidelines are out but now since things are under discussion it is expected to happen soon. No timeline or deadline has been shared in this discussion but this was quite an interactive conversation about the cryptocurrency future in the country. crypto is a revolution and as soon as the country realises it can be helpful for them to build their resources and required infrastructure which can empower them. This is the first time when something is discussed in detail about cryptocurrency in India where regulation is the aim and they are completely against banning it. We can call it a good beginning but this journey is not going to be easy I believe because as per the past scenarios, it is difficult to expect something extraordinary from these people unless they do and share with the people.
As of now, I'm not expecting anything but a few of the expectation that the community and this industry has got from them. Taxation is the biggest part that they must think about and even the loss offset along with TDS is another part that is making things difficult. Maybe we can hear something related to regulation or the betterment this year or most probably the next year but again there is no timeline so we cannot be certain how long it is going to take. |
Thank you