Indian Finance Ministry Mulls Crypto Rule
India has announced its intention to carefully assess and determine its stance on cryptocurrencies in the upcoming months, drawing inspiration from the global consensus reached during the Group of Twenty (G20) discussions. A senior official from India’s Finance Ministry unveiled this strategic move during a press conference held on the sidelines of the G20 leaders’ summit.
India will decide on its stance on cryptocurrencies in the coming months, a senior Finance Ministry official said on Sunday. India is currently one of the least crypto-friendly regions in the world. Polygon and other star teams left to Dubai. As the G20 develops a crypto risk…
— Wu Blockchain (@WuBlockchain) September 11, 2023
India’s Crypto Future
Ajay Seth, Secretary of the Department of Economic Affairs, disclosed, “India’s position will be decided in the coming months,” highlighting the importance of evaluating the internationally agreed-upon framework for assessing risks in the crypto industry. He emphasized that India seeks to formulate a robust and well-informed crypto policy that aligns with global standards.
India’s approach to cryptocurrencies has been a topic of prolonged scrutiny, considering its once-thriving crypto industry, which faced numerous challenges, including stringent taxation, a crypto winter, a “shadow ban,” anti-money laundering regulations, and regulatory actions against major crypto exchanges. The spotlight intensified when India, during its G20 presidency, prioritized the establishment of global crypto regulations, culminating in the release of a “synthesis paper” by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
Ban to Balance: India’s Crypto Regulatory Journey
Seth’s recent comments indicate a shift in India’s perspective, suggesting the possibility of India crafting its cryptocurrency legislation. This marks a notable departure from the suspension of comprehensive crypto legislation plans in early 2022.
Read More: G20 Backs FSB Crypto Regulation Plans
Indian officials have previously indicated that the nation may not necessarily require a dedicated crypto bill, particularly since India has already implemented anti-money laundering measures and a tax structure for cryptocurrencies. While the nation’s central bank advocated for an outright crypto ban, the government has not yet committed to such a stance. The synthesis paper released as part of the G20 discussions has also cautioned against a blanket ban, advocating for a balanced regulatory approach. Prior to the G20 Leaders’ Summit, India had published its presidency note on cryptocurrencies, outlining its initial recommendations, which subsequently informed the synthesis paper’s finalization.
