Global policies on cryptocurrencies are shifting, and India is reconsidering its position. According to a senior government official, this new appraisal may postpone the publication of a discussion paper on crypto regulations that was due out in September 2024.
Ajay Seth, the secretary of economic affairs, said many nations have modified their stance on digital assets and India was re-evaluating its position. “More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again,” he added .
It follows plans by former US president Donald Trump to overhaul crypto rules, establishing a task force to formulate new policies and investigate a national cryptocurrency reserve.
Despite strict regulations and high taxes on crypto trading, Indian investors continue to show strong interest in digital assets. In December 2023, India’s Financial Intelligence Unit (FIU) issued notices to nine offshore crypto exchanges for not complying with local laws. Binance, the world’s largest crypto exchange, was fined 188.2 million rupees ($2.25 million) in June 2024, a month after registering with the FIU to resume operations in India.
Opinions among Indian regulators remain divided. While the market watchdog has suggested multiple agencies oversee crypto trading, the Reserve Bank of India maintains that private digital currencies pose economic risks.
As countries worldwide take a more open approach to crypto, India’s next move remains uncertain. The government’s review could lead to updated regulations that balance innovation with financial security.
