Countries should develop a unified approach to creating a regulatory framework for the cryptocurrency industry. Indian Prime Minister Narendra Modi said this at the World Economic Forum in Davos.
According to him, due to the technology underlying digital assets, no single country can lead the fast-growing sector.
“Whatever the technology involved, measures taken by one country will be insufficient to solve the tasks it faces. We must share a similar mindset,” Modi said.
The prime minister added that countries must also work together to address inflation, environmental and supply-chain problems.
In India itself, a final version of cryptocurrency regulation has not yet been decided. According to The Economic Times, the bill is unlikely to be brought before the upcoming parliamentary session.
“This is a complex topic. It will require more time,” a senior finance ministry official told the publication.
According to him, the government wants to await comments from the Reserve Bank of India after the pilot launch of CBDC. Another reason for the delay, sources said, is the lack of clarity around the taxation system for digital assets — its full variant is still in development.
In early 2021, India reported a possible legislative ban on cryptocurrency, with talk even turning to criminal liability for owners.
In mid-year, reports emerged that authorities would legalise digital currencies as a class of assets.
However in November there was renewed talk of the government’s intention to ban most ‘private currencies’. This sparked panic in the local market, which led to a short-term local 15% drop in the Bitcoin price.
In December, media reported that authorities would indeed regulate digital assets instead of banning them.
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