India is gearing up to unveil a crypto consultation paper in September-October 2024, as per reports from CNBC. The exclusive panel, led by the Secretary of the Department of Economic Affairs (DEA), will release the paper seeking input from industry players and stakeholders on the regulatory treatment of crypto assets in the country. This move is part of the government's ongoing efforts to bring clarity to the regulation of crypto assets.
This development comes after the Ministry of Finance in India stated that there were no immediate plans to regulate the sale of crypto assets. However, it did highlight that Virtual Digital Asset Service Providers (VDASPs) are considered reporting entities for anti-money laundering (AML) purposes.
Last year, the Financial Stability Board (FSB) put forth policy and regulatory recommendations for cryptocurrencies, which were later integrated into the G20 roadmap. India's Finance Ministry also indicated that it would take into account the country-specific characteristics and risks before implementing any crypto regulatory measures.
India Ramps-Up to crypto Regulations Despite RBI's Faint Moves
Despite past criticisms of cryptocurrencies by the Reserve Bank of India (RBI), the country's central bank, there seems to be a shift towards more progressive crypto regulations. An RBI official previously commented that cryptocurrencies are not considered "currencies" due to their lack of underlying value.
However, there have been positive steps towards framing a comprehensive crypto policy, as seen last September with global consensus during India's presidency of the G20 nations. Additionally, Prime Minister Narendra Modi emphasized the need for a global cryptocurrency framework during the B20 Summit India 2023.
