Union Finance Minister Nirmala Sitharaman during the annual spring meetings of the IMF and the World Bank flagged concerns surrounding the use of cryptocurrencies in money laundering and terror financing and called for a framework for the regulation of cryptocurrencies.
In her address at a seminar during the ongoing spring meet of the International Monetary Fund (IMF), Sitharaman said: “I think the biggest risk for all countries across the board will be the money laundering aspect and also the aspect of currency being used for financing terror.”
“I think regulation using technology is the only answer. Regulation using technology will have to be so adept, that it has to be not behind the curve, but be sure that it is on the top of it. And that’s not possible. If any one country thinks that it can handle it. It has to be across the board,” the Minister added.
According to news agency ANI, the Union Minister reached Washington today morning on an official visit to attend the Spring Meetings at the World Bank, the G20 Finance Ministers meeting and the Central Bank Governor Meeting (FMCBG).
Meanwhile, Sitharaman also highlighted India’s performance in the digital world and the increase of the digital adoption rate in the country during pandemic.
“If I use 2019 data, the digital adoption rate in India is about 85 percent. But globally that same year it was only somewhere near 64 per cent. So the pandemic time actually helped us to test and prove for ourselves that it is simple to use, common people can use it, and adoption actually was proven,” Sitharaman asserted.
To recall, budget 2022-23 proposed a 30 percent tax on income from transactions in crypto assets and also imposed a 1 percent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold.
“We did announce that on the income that was generated out of the transactions of these crypto assets will be taxed at 30 per cent and over and above that, there is a 1 percent tax deduction at source which is also imposed on every transaction. So through that we will be able to know who’s buying and who’s selling it,” she said.
On the Central Bank Digital Currency (CBDC), she said, it is going to happen sometime this year.
Union Finance Minister Nirmala Sitharaman from India during the annual spring meetings of IMF and World Bank called for a framework for the regulation of cryptocurrencies. She said that cryptocurrencies are a high-risk, money laundering and terror funding threat. In her address at a seminar during the ongoing spring meet of