In India, Information Technology Minister Rajeev Chandrasekhar has endorsed a conscious, measured approach to digital currencies. He is of the opinion that given digital currencies' effect on macroeconomies, appropriate regulation is needed to protect investors and the economy. Chandrasekhar also vouched for the RBI's efforts in navigating the economy through turbulent times. This demonstrates the readiness to pursue digital currency regulations at a national level.

However, consensus seems to prevail that these regulations are inclined towards a global approach. India plans to develop this regulatory framework under its G20 presidency and seek the help of the International Monetary Fund and other relevant financial agencies. Indian Finance Minister Nirmala Sitharaman expressed this ambition to create a "standard operating procedure which everyone follows to make a regulatory framework, and if it can be effective".

This global push is consequent to a recent influx of collapses involving centralised entities. It is well known that digital currency regulation is necessary to manage the widespread use of digital assets. This regulatory framework could bring forth a layer of security and combat problems related to money laundering, investor protection, and unwanted speculative bubbles.

In India, digital currencies have received the status of being legal, but activities around them are subject to Foreign Exchange Management Act (FEMA). Besides, Indian citizens are subjected to various taxation measures such as 30% on profits and 1% tax deductable at source.

All in all, digital currency regulations in India are being carefully done, with regulators taking their time to form a secure network before completely opening up. The country is unifying forces at a global level to effectively regulate digital currencies and control their usage.



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