IMF Commends India for Strict Crypto Regulatory Undertaking

The Financial Counselor and Director of the International Monetary Fund (IMF)’s Monetary and Capital Markets Department, Tobias Adrian, commented on India’s approach to regulating cryptocurrency in an interview with PTI Tuesday, during the 2022 spring meeting of the IMF and the World Bank.

The IMF executive noted that for India, “regulating crypto assets is certainly high on the agenda, adding “that is something that is done globally.” Adrian added that: “Within the Financial Stability Board, we are trying to come up with global standards for crypto-asset regulations. I think that’s important for India to also adopt.”

Reports show that India’s Ministry of Finance has been in talks with the IMF and the World Bank concerning cryptocurrency policies, as it works towards regulating the crypto industry within its jurisdiction.

Adrian further commented on the plan to tax cryptocurrency transactions in India, noting: “Of course, I know that India has changed the taxation of crypto assets, and that’s a welcome move.”

Recent reports show that the Indian government now taxes cryptocurrency income at a 30% flat rate without allowance for loss reductions. Not surprisingly, cryptocurrency trading volumes across exchanges in India suffered a massive crash shortly after the taxation announcement, which went live on April 1. Additionally, a 1% tax requirement, which would be deducted at source (TDS), will go into effect in the near future.

IMF Sees India in Positive Light

Expressing his delight at India’s decision in crypto, the IMF director said that the organization is looking at the Asian nation in “a very positive fashion.” He added: “I think there are many opportunities and growth (in India is coming back). There’s a recovery. There’s a lot of excitement around new growth opportunities, new developments… We always value that growth is inclusive and is touching all the people. But our general outlook in India is a fairly positive one.”