The Indian government is preparing to release a discussion paper on its crypto policy stance before September.
This development was announced by Economic Affairs Secretary Ajay Seth in an interview with Moneycontrol.
India’s crypto stance from scrutiny to strategy
The planned discussion paper aims to solicit views from stakeholders on India’s cryptocurrency regulations.
Currently, crypto assets in India are only regulated from anti-money laundering (AML) and counter-terror financing (CTF) perspectives. The upcoming paper will explore whether this regulatory remit should be expanded.
Seth revealed that an inter-ministerial group, including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), is working on this broader policy.
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The move follows India’s G20 presidency, during which member countries endorsed guidelines set by the International Monetary Fund (IMF) and Financial Stability Board (FSB).
These guidelines warn against blanket bans on crypto activities, suggesting a more nuanced approach.
India’s crypto journey has been complex, with the RBI initially banning crypto dealings in 2018. This decision was later overturned by the Supreme Court in 2020.
While a bill proposing a ban on private cryptocurrencies was drafted in 2021, it was never introduced in parliament.
This forthcoming discussion paper represents a crucial step in India’s crypto policy evolution. By seeking stakeholder input, the government appears to be moving towards a more inclusive and potentially progressive stance on digital assets.
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This could be a major announcement for the crypto community in India. The Indian community has been criticizing the government for its hefty tax, but the government has not made a decision on the unreasonable tax.
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