India has unveiled its efforts and work towards regulating crypto for the first time as it has taken over the G-20 presidency.

Secretary, Department of Economic Affairs Ajay Seth said, “IMF is working on a paper in consultation with us (India) which will focus on aspects of the monetary policy and the policy approach to crypto assets.” 

Ajay Seth had also informed that the International Monetary Fund (IMF) had also taken the lead around the crypto paper in January with the representatives of developing economies.

Seth also revealed that the IMF had led a meeting with the representatives of developing economies 

He said, “There’s going to be a 135-minute seminar on crypto assets on the policy response (during a G-20 meeting later this month), and for that, again the IMF is preparing the finalized paper that will form the base.”

On the eve of when India took over the G-20 or Group of 20 presidency, it took the responsibility to shape the group’s agenda. The G-20 is a group of the 20 largest economies around the globe, including the European Union as a bloc- on Dec 1. Finance Minister of India, Nirmala Sitharaman, has also suggested that in the G- 20 presidency the topic around how to regulate crypto assets will be the most prior agenda.

India has never declared crypto as legal, it has always remained clear on its stance, though it imposed stiff taxes in 2022.

On asking how a nation can impose a tax on something which is not legal, the finance minister of India said, “I don’t wait till regulation comes into place for taxing people who are earning profits.”

Ajay Seth further explained, giving clarity on the matter, that  “The question of legality will come only if something is declared illegal. Crypto assets are not illegal in this country,” 

India acknowledges the fact that global consensus on the matter of crypto is of the utmost importance before making it legal in the country.

Seth said,  “We had prepared a bill (which) went through internal discussions. Thereafter there was a consensus that we have to deal with it at the global level.”

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