India’s push for global regulation of cryptocurrencies has received backing from two major financial institutions: the International Monetary Fund (IMF) and the United States. India, as the current president of the Group of 20 (G20) bloc, is using its position to call for a single regulatory framework for cryptocurrencies.

During a recent meeting between finance chiefs of G20 countries, India gained crucial support for its bid to regulate cryptocurrencies. The country’s Ministry of Finance has already held a seminar for G20 members on how to develop a unified regulatory framework.

However, India’s tough stance on cryptocurrencies may cause alarm for the industry. The Indian government has previously discussed a law that would ban or regulate cryptocurrencies, with the Reserve Bank of India advocating for a ban due to the perceived similarity of digital assets to Ponzi schemes.

India already has several policies in place that appear to be anti-crypto, including a 1% tax on every sell crypto transaction and a 30% capital gains tax. These policies have had a noticeable impact on the Indian crypto industry.

The IMF, a long-time critic of cryptocurrencies, also supports India’s push for regulation. Managing Director Kristalina Georgieva has said that banning cryptocurrencies should be an option, citing the collapse of several crypto exchanges and the loss of billions of dollars in assets.

The IMF recently released a nine-point action plan on how countries should treat cryptocurrencies. One of the points emphasized was that countries should not make digital assets their legal tender.