India is gearing up to release a crucial consultation paper on cryptocurrencies. The Department of Economic Affairs (DEA), led by its Secretary, is spearheading this initiative. The final document is expected to be published between September and October.
From G20 Consensus to National Policy
This upcoming consultation paper marks a major step in India’s evolving approach to cryptocurrency regulation. It follows Finance Minister Nirmala Sitharaman’s October 2023 announcement that G20 nations had reached a unified stance on crypto oversight.
The paper aims to gather feedback from various stakeholders on how best to regulate crypto assets, signaling the government’s commitment to a collaborative approach.
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The move comes amid the complex backdrop of India’s crypto landscape. While the country banned nine offshore crypto platforms in 2023 for violating anti-money laundering laws, it has also shown openness to regulated crypto activities.
For instance, Binance, the world’s largest cryptocurrency exchange, successfully re-established its presence in India by registering with the Financial Intelligence Unit.
Economic Affairs Secretary Ajay Seth previously highlighted the G20’s recognition of the heightened risks cryptocurrencies pose, particularly for emerging economies.
The international discussions have explored key aspects of effective regulation, including responsible entities, timeframes, and necessary regulatory components.
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The consultation paper is expected to provide crucial insights into the government’s thinking. It may address key issues such as investor protection, market integrity, and the potential economic impact of widespread crypto adoption.
