India’s stance on cryptocurrency is set for a transformation, as affirmed by the Finance Minister. Ajay Seth, Secretary of the Department of Economic Affairs, revealed this during the recently concluded G20 leaders’ summit. “India’s approach to crypto will be determined in the coming months.” He emphasized that the G20 had established a framework for assessing risks, and the country would base its policy decisions on the global consensus reached by world leaders.
This announcement carries significant weight given India’s history of stringent measures against digital assets, including a 30% tax rate and a “shadow ban” that led to local payment processors cutting off banking access to crypto exchanges, among other regulatory actions.
Prime Minister Narendra Modi has earlier stressed that cryptocurrency regulations should extend beyond the boundaries of a single nation or group. “The focus should be on adoption, democratization, and a unified approach,” he added. Despite India’s reservations about cryptocurrencies, Modi has indicated that the discussions now encompass broader macroeconomic implications, moving beyond concerns solely related to financial stability.
The other day, India hosted the eighteenth G20 meeting in New Delhi, garnering attention from crypto enthusiasts. The release of a joint policy paper called the “synthesis paper” by the International Monetary Fund [IMF] and the Financial Stability Board [FSB] warned against blanket bans on cryptocurrencies, recommending instead targeted restrictions and sound monetary policies to mitigate associated risks.
India: What Can Crypto Investors Anticipate?
Reports indicate that the nation may not necessarily introduce its crypto regulations in the form of a bill. A complete ban, a stance previously advocated by the Reserve Bank of India [RBI], also appears less likely, as the government has earlier distanced itself from such a possibility and also indirectly contended that a complete ban on virtual assets won’t be the solution in the latest “synthesis paper.”
India has now made the formulation of global crypto regulations a priority during its G20 presidency, as evidenced by the “synthesis paper” from the IMF and FSB. Besides, the recent media statements from the finance ministry indicate a shift towards greater transparency and mark the beginning of a new era in the country’s crypto landscape.