India is set to release a discussion paper detailing its cryptocurrency policy stance by September, following extensive consultations with relevant stakeholders, according to Ajay Seth, the Economic Affairs Secretary in India’s Finance Ministry.
Ajay Seth emphasized the importance of stakeholder input, stating, “The policy stance involves consulting relevant stakeholders. A discussion paper will be presented outlining the issues, allowing stakeholders to provide their views.” An inter-ministerial group, including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), is currently working on a comprehensive policy for cryptocurrencies.
In September 2023, Seth indicated that India would develop its own position on cryptocurrency regulation after analyzing global perspectives. The forthcoming discussion paper aims to gather a consensus among stakeholders rather than enforcing comprehensive legislation.
The RBI has historically been against legitimizing cryptocurrencies or stablecoins, citing risks to macroeconomic stability. Conversely, SEBI supports regulating digital assets and has advocated for multi-authority oversight of cryptocurrency trading.
While India lacks comprehensive crypto legislation, it has imposed stringent taxes on the sector and requires crypto entities to register with the Financial Intelligence Unit (FIU-IND) to comply with anti-money laundering (AML) and terrorism financing standards set by global organizations like the Financial Action Task Force (FATF). This move marks a significant shift towards industry credibility.
Seth noted that in India, cryptocurrencies are currently regulated from an AML and Electronic Funds Transfer (EFT) perspective. He questioned whether the regulatory remit should be expanded and stated that the discussion paper would address these concerns.
In the context of India’s G20 presidency, Seth previously mentioned that India would assess global leaders’ approaches to formulating an acceptable framework for crypto regulations. This aligns with India’s strategy to achieve a consensus-based approach to global crypto rules.
Disclaimer: The information provided on CoinsLately is for informational and educational purposes only. CoinsLately does not provide investment, financial, or legal advice. The content on this site represents the opinions and views of the authors and should not be considered as professional financial advice.
Cryptocurrency investments are highly speculative and involve substantial risk. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. CoinsLately and its authors are not responsible for any financial losses or damages incurred as a result of the information provided on this site.
