Indian Prime Minister Modi Skips Crypto Talks at G20, Raising Eyebrows

At the recent G20 summit, held under India’s presidency, Prime Minister Narendra Modi notably sidestepped any mention of cryptocurrency regulation, despite growing global calls for clear frameworks and India’s rising role in the digital economy. The absence of crypto from Modi’s agenda surprised many, especially as other world leaders emphasized the importance of coordinated crypto policies.

India has witnessed a dramatic surge in crypto adoption, ranking among the top countries in terms of user base and trading volume. Yet, regulatory clarity remains elusive. The Reserve Bank of India (RBI) has taken a cautious approach, favoring a central bank digital currency (CBDC) over decentralized tokens like Bitcoin or Ethereum. Meanwhile, Indian crypto exchanges and startups continue to operate in a grey zone, burdened by high taxes and uncertain compliance obligations.

Leading up to the G20 summit, there was hope that India would use its platform to spearhead global crypto regulation frameworks, especially given its influence in the developing world. However, Modi’s silence on the issue sent mixed signals. Some analysts believe this may be a strategic move to avoid taking sides ahead of upcoming national elections, given the polarizing views on crypto within India’s political and financial institutions.

Others argue that India may be biding its time, watching how regulatory frameworks evolve in the U.S., EU, and UAE before committing to a clear domestic policy. India’s Ministry of Finance has been in talks with global bodies such as the IMF and FATF, exploring standards for anti-money laundering (AML), consumer protection, and risk mitigation in the crypto space. However, these discussions have yet to translate into concrete legislation.

Meanwhile, crypto users and startups in India continue to face hurdles. A 30% capital gains tax, combined with 1% TDS on every trade, has driven many traders to foreign exchanges or decentralized platforms. Industry leaders have repeatedly called for fairer taxation and regulation that encourages innovation rather than stifling it.

International observers note that while India refrained from spotlighting crypto at the G20, its stance still influences global discourse. With its large population of tech-savvy youth and rapidly digitizing economy, India’s eventual approach to crypto could set a precedent for other developing nations.

As the world awaits clearer signals from Delhi, the crypto community remains cautiously optimistic. India’s decision to stay silent—for now—may reflect a longer-term strategy to build a robust regulatory framework. But for innovators and investors seeking clarity, the lack of immediate action remains a point of growing frustration.