India has welcomed the International Monetary Fund (IMF)'s aid in its quest to formulate crypto laws that would work on an international level. The development has been confirmed by Ajay Seth, Secretary of India's Department of Economic Affairs. India took over the presidency of the G20 group of nations in December last year. The countries involved in this planning under India's leadership include Argentina, Australia, Brazil, Canada, and Russia, among others.
Drafting detailed laws to govern the crypto sector has been named among India's primary agendas during its year-long G20 presidency. Nirmala Sitharaman, the Finance Minister of India, had shared India's crypto-related intensions with the G20 group last December.
The IMF, which has previously voiced its concerns against spreading the use of these volatile crypto assets, would be preparing a draft work for potential crypto laws.
“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. There's going to be 135-minute seminar on crypto assets on the policy response (during a G20 meeting later this month) and for that again the IMF is preparing the finalised paper that will form the base,” a Coindesk report quoted Seth as saying.
Despite India's silence around its stance on the crypto sector, Seth has reiterated that the crypto industry is not illegal in India.
While crypto holding and trading is allowed in India, some businesses have also been experimenting with accepting crypto payments. Unlike El Salvador, India does not equate any cryptocurrency to its fiat currency.
Industry insiders in India recently expressed disappointment after FM Sitharaman maintained a stark silence around anything related to cryptocurrency.
Speaking to Gadgets 360, representatives from crypto firms like WazirX and CoinSwitch said that it has been less than a year since crypto tax laws went live in India, and that the government is taking its time to analyse crypto-related trading and industrial patterns thriving in the nation.
For now, the IMF's opinion around the virtual digital assets industry remains unknown.