Take the lead on crypto regulation: Finance Minister IMF MD

 

• Sitharaman also stressed on the timely completion of the 16th General Review of quotas to remove inequality and imbalances in the global economy.



BENGALURU: Union Finance Minister Nirmala Sitharaman urged the International Monetary Fund (IMF) to play a major role in regulating crypto assets and defining a globally coordinated approach on the issue. This was raised during a meeting with IMF Managing Director Kristalina Georgieva in New Delhi on Wednesday.



Georgieva met with Union FM to discuss India's upcoming G20 Presidency and IMF's support to India for the presidency.

Sitharaman had called for a global framework to regulate cryptocurrencies during the spring meetings of the IMF and the World Bank in April, warning of risks related to money laundering and terror financing for all countries. He said that no country can face these risks alone and they can be regulated only when countries come together.

India introduced 30% tax on crypto assets from 1st April. Further, 1% TDS on payment of virtual assets exceeding ₹10,000 in a year and taxation of such gifts in the hands of the recipients will be applicable from July 1.

Sitharaman also stressed on the timely completion of the 16th General Review of quotas to address inequalities and imbalances in the global economy.

Georgieva agreed with the FM that for the IMF to remain relevant, it is important that a general review of quotas be carried out to reflect the changed status of emerging market economies in the world order, according to a release issued by the Ministry of Finance.

IMF standards, which are the essential wellspring of IMF reserves, decide casting a election shares. The quota should be reviewed every five years, but it can be delayed.


India's quota is 2.76% and China's is 6.41% while America's quota is 17.46%. Quotas are decided on the basis of a country's GDP, its economic openness, international reserves and economic variability.



The two discussed major downside risks to the global economy and concerns of cross-border impacts due to the geopolitical situation and tighter financial conditions. They also recognized that the effects of rising food and energy prices and increased global inflation due to international debt have affected low-income countries the most.

Sitharaman reiterated the importance of coordinated policy measures and multilateralism to mobilize adequate financial resources for climate action, emphasizing that the funds committed by developed countries are not yet available. She goes on to say that carbon pricing may not be a viable policy tool for climate action.