Indian Prime Minister Narendra Modi recently voiced his views on the cryptocurrency market, calling for global cooperation in this digital asset.
As Bitcoin News reports, Indian Prime Minister Narendra Modi addressed the crypto-asset at the World Economic Forum’s Virtual Davos Agenda Conference. During his speech, it seemed that Mr. Modi showed a certain support for the trend of investing and trading in cryptocurrencies.
India Calls on World to Cooperate on Cryptocurrency Issue
Specifically, in his speech, Prime Minister Modi called on governments around the world to cooperate on the issue of virtual currencies as well as other digital assets. He pointed out that “the type of technology involved in it (virtual currency), the decisions of a single country will not be enough to deal with the inherent challenges”.
Therefore, according to him, each country, nation and global agency should cooperate and collaborate with each other to solve the problems related to cryptocurrencies.
The Indian Prime Minister stated as follows: “The challenges we have faced are increasing in recent times. To combat these, collective and synchronized action of all countries is needed.
Supply chain disruptions, inflation and climate change are examples of current difficulties. Another example is cryptocurrencies. Taking into account the types of technologies involved, a single country decision will not be enough to deal with the challenges cryptocurrencies present. We have to have a similar mindset.”
This is not the first time Indian Prime Minister Narendra Modi has called for countries to cooperate on cryptocurrencies. Last December, he said at the Summit hosted by US President Joe Biden that cryptocurrencies should be used to empower democracy.
In November, he also said that if the countries cooperate, if they can cooperate on bitcoin and virtual currency, it will ensure that this asset is not exploited and distorted.
Cryptocurrency regulatory framework in India remains unclear
The Indian government has been working on a regulatory framework for cryptocurrencies for quite some time. The bill titled “Cryptocurrency and Regulation of Official Digital Currency” is listed for consideration in the winter session of Congress but has yet to be passed.
Since then, relevant government agencies are continuing to research. Prime Minister Modi will be the one to approve the final decision on India’s crypto regulation.
However, the Reserve Bank of India (RBI) has called on the government of this country to completely ban cryptocurrency transactions and investments. During the recent meeting of the Central Governing Council, the central bank said a partial ban would not really work.
The RBI has repeatedly warned about the risks cryptocurrencies pose to the country’s financial system. The Swadesh Jagran Manch (SJM), an offshoot of the Rashtriya Swayamsevak Sangh (RSS – the world’s largest NGO for recruiting and training the country’s best leaders) has also called on the Indian government to ban the currency.
The Indian cryptocurrency industry currently lacks tax provisions in the 2022-2023 union budget. The efforts come after the Directorate General of GST Intelligence (DGGI) raided major cryptocurrency exchange support agencies and found evidence of massive tax evasion.
Meanwhile, neighboring Pakistan is also working on a crypto regulatory framework. The State Bank of Pakistan (SBP) recently proposed a complete ban on cryptocurrencies.
