A senior official from the Ministry of Finance of India announced that the country will conduct a comprehensive analysis and make a decision on its stance on cryptocurrencies in the coming months.
India to Determine Cryptocurrency Position in Coming Months Following G20 Guidance
This decision will be influenced by the global framework for crypto regulations approved by the G20 leaders during their recent negotiations.
“India's position will be decided in the coming months,” said Ajay Seth, Secretary, Department of Economic Affairs.
He emphasized that as the framework for assessing risk has been put together by the G20, India will “carefully consider what leaders have agreed to globally” before crafting a policy that suits the country's needs.
India's approach to cryptocurrencies has been a subject of ongoing debate. The country was once home to a thriving crypto industry.
But it has faced challenges such as stringent taxes, a downturn in the crypto market, regulatory uncertainties and enforcement actions against major crypto exchanges.
Seth's statements point to a shift in India's approach and potential development of domestic legislation for cryptocurrencies.
This marks a departure from previous plans to introduce comprehensive crypto legislation through a bill put on hold in early 2022.
While the country's central bank has advocated a crypto ban, the government has not taken an official stance on the matter, indicating its reluctance to take that route.
The G20's analysis paper also recommended against imposing a blanket ban on cryptocurrencies.
*This is not investment advice.
