In an exclusive interview with Business Today, Prime Minister Narendra Modi stressed the need for a global framework for cryptocurrency regulation. He said that the rapid pace of technological change is a reality and that there is no point in ignoring or wishing it away. Instead, he said, the focus should be on adoption, democratization, and a unified approach.
Modi pointed out that cryptocurrencies have the potential to be a powerful tool for financial inclusion and economic growth. However, he also acknowledged the risks associated with cryptocurrencies, such as their volatility and the potential for misuse.
He said that a global framework for cryptocurrency regulation is needed to ensure that these risks are mitigated and that the benefits of cryptocurrencies can be maximized. He also called for a framework that is fair and equitable, and that takes into account the concerns of all stakeholders, including developing countries.
Modi’s comments come at a time when there is growing interest in cryptocurrency regulation around the world. The Financial Stability Board, an international body that monitors and makes recommendations on the global financial system, has called for a coordinated approach to cryptocurrency regulation.
The Indian government is also considering its own approach to cryptocurrency regulation. In the 2022-23 budget, the government announced a 30% tax on gains from cryptocurrencies and a 1% tax deducted at source. However, the government has not yet released a detailed framework for cryptocurrency regulation.
Modi’s comments suggest that the Indian government is likely to take a cautious approach to cryptocurrency regulation. However, he has also made it clear that the government is open to the potential benefits of cryptocurrencies. It is likely that the Indian government will continue to engage with other countries and stakeholders in the coming months to develop a global framework for cryptocurrency regulation.
In addition to the risks mentioned by PM Modi, there are other challenges that need to be addressed in cryptocurrency regulation. These include the lack of transparency in the cryptocurrency market, the difficulty of tracing cryptocurrency transactions, and the potential for cryptocurrencies to be used for illegal activities.
Despite the challenges, there is a growing consensus that cryptocurrency regulation is necessary. A well-designed regulatory framework can help to mitigate the risks associated with cryptocurrencies and promote their responsible use. It can also help to ensure that cryptocurrencies are not used for illegal activities.
The development of a global framework for cryptocurrency regulation is a complex and challenging task. However, it is essential if we are to reap the benefits of this new technology while mitigating its risks. PM Modi’s comments are a welcome step in the right direction.