India plans to release a discussion paper outlining its policy stance on cryptocurrencies before September, according to an interview with Indian Economic Affairs Secretary Ajay Seth.
India to Publish Crypto Policy Stance by September
Seth emphasized the importance of consulting relevant stakeholders in shaping policy. “The policy stance is how to consult relevant stakeholders, so coming out clearly and saying there is a discussion paper here, these are the issues and then the stakeholders will give their views,” he said.
He also noted that an inter-ministerial group is currently developing a broader policy for cryptocurrencies and expects the discussion paper to be published before September.
This inter-ministerial group includes key regulatory bodies such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
The RBI has consistently opposed the legitimization of cryptocurrencies and stablecoins, arguing that they pose macroeconomic stability risks.
SEBI, on the other hand, has shown that it is open to regulating digital assets and has suggested that oversight of cryptocurrency trading should be handled by more than one authority.
While India does not have comprehensive crypto legislation, it imposes strict taxes on the sector.
In addition, crypto assets are required to register with the country's Financial Intelligence Unit (FIU-IND) to comply with anti-money laundering (AML) and counter-terrorism financing standards set by global bodies such as the Financial Action Task Force (FATF).
This registration requirement marks a shift towards greater reliability for the industry.
*This is not investment advice.