Economic Affairs Secretary Ajay Seth has stated that India will disclose its view on cryptocurrency policy by September after engaging in consultations with important parties.
The policy will be formulated through a comprehensive process, involving the creation of a discussion paper that will outline the key concerns and solicit feedback from multiple stakeholders.
The policy will be influenced by the agreement among stakeholders rather than being governed by extensive regulation. A collaborative team comprising the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) is now engaged in formulating a policy. The objective is to publish a discussion paper on this policy before September.
India’s existing restrictions on cryptocurrencies are restrictive, imposing significant fees and mandating that crypto companies must register with the Financial Intelligence Unit (FIU-IND) to comply with international anti-money laundering (AML) and counter-terrorism financing standards.
Seth raised the inquiry of whether the regulatory scope should be broadened, a matter that will be examined in the discussion paper.
This discussion paper is a response to Seth’s commitment in September 2023 to examine and determine India’s stance on cryptocurrencies, taking into account the positions of world leaders.
India’s pledge is in line with its leadership of the Group of 20 (G20), which emphasizes the importance of reaching a consensus on global regulations for cryptocurrencies. The discussion paper is anticipated to address multiple crucial matters, encompassing wider regulatory scopes and the functions of diverse regulatory agencies.
In February of this year, the Reserve Bank of India (RBI) announced its plan to introduce offline features for its Central Bank Digital Currency (CBDC), the digital rupee, to boost its adoption in India’s underconnected areas. Governor Shaktikanta Das announced the initiative during a Monetary Policy Committee review, highlighting the RBI’s commitment to enabling digital currency use in these remote regions.
