India to Release Landmark Crypto Policy Paper in September
In a July 25 interview with Moneycontrol, Indian Economic Affairs Secretary Ajay Seth announced that the country will release a discussion paper outlining its stance on cryptocurrencies before September 2024.
This paper, rather than proposing immediate legislation, will focus on initiating stakeholder consultation.
An inter-ministerial group, including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), is developing a broader cryptocurrency policy.
This group incorporates diverse perspectives on Indian crypto regulation. The RBI, for example, advocates prohibiting cryptocurrencies due to perceived macroeconomic risks. Conversely, SEBI appears more open to regulation.
“The policy stance is how does one consult relevant stakeholders, so it is to come out in the open and say here is a discussion paper these are the issues and then stakeholders will give their views,” Seth explained in the interview.
It is encouraging to read that @FinMinIndia will articulate its policy stance on cryptoassets in a discussion paper before September.
We thank the government for including cryptoasset regulations in its 100-day agenda of the new government, building on India’s G20 Presidency… pic.twitter.com/palRYyMcgr
— Ashish Singhal (@ashish343) July 25, 2024
Despite the lack of comprehensive legislation regarding cryptocurrency in India, the country has imposed substantial taxes on cryptocurrency transactions.
Recently, the Indian government mandated that crypto entities register with the Financial Intelligence Unit (FIU-IND).
This measure ensures compliance with anti-money laundering (AML) and terrorism financing standards set by organizations such as the Financial Action Task Force (FATF).
The upcoming discussion
