Finance Minister Nirmala Sitharaman Says Biggest Risk Of Crypto Is Laundering, Terror Financing

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During the annual spring meetings of the IMF and the World Bank, Union Finance Minister Nirmala Sitharaman flagged concerns about the use of cryptocurrencies in money laundering and terror financing and called for a framework for the regulation of cryptocurrencies.

In her address at a symposium during the ongoing spring meeting of the International Monetary Fund (IMF), Sitharaman said: “I think the biggest risk for all countries across the board will be the money laundering aspect and also the currency aspect being used. There has been terror financing.”

“I think regulation using technology is the only answer. Regulation using technology has to be efficient enough not to be behind the curve, but make sure it is on top of it. And that is not possible. If any one country thinks that it can handle it. It should be across the board,” the minister said.

According to news agency ANI, the Union Minister arrived in Washington this morning on an official visit to attend the World Bank Spring Meetings, G20 Finance Ministers Meeting and Central Bank Governors Meeting (FMCBG).

Meanwhile, Sitharaman also highlighted India’s performance in the digital world and the rise in digital adoption rate in the country during the pandemic.

“If I use the 2019 data, the digital adoption rate in India is around 85 percent. But globally in the same year it was only close to 64 percent. So the times of the pandemic really helped us to test it for ourselves and prove that it is easy to use, common people can use it, and adoption was really proven,” emphasized Sitaraman.

To recall, Budget 2022-23 proposed a 30 percent tax on income from transactions in crypto assets and also 1 percent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold.

“We had announced that income generated from transactions of these crypto assets will be taxed at 30 per cent and above, there is a 1 per cent tax deduction at source which is also levied on each transaction. So through this we will know that Who is buying it and who is selling it,” she said.

On Central Bank Digital Currency (CBDC), he said, it is going to happen sometime this year.

FM Nirmala Sitharaman’s post that says crypto’s biggest risk is laundering, terror financing first appeared on BGR India.

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