Langgam Pos - India's government is preparing to unveil a comprehensive study on cryptocurrency regulations in September 2024. This move follows widespread support for the legitimacy of cryptocurrencies voiced by various countries at the G20 summit in India last year.
The upcoming document will incorporate feedback from stakeholders across the country, including various ideas and suggestions related to cryptocurrencies.
According to CryptoPotato, in an interview with Moneycontrol, India's Secretary of Economic Affairs, Ajay Seth, revealed that the discussion paper will offer recommendations on how to regulate cryptocurrencies within India.
Currently, cryptocurrency activities are governed solely by anti-money laundering (AML) and electronic fund transfer (EFT) regulations.
A key focus will be determining whether the scope of regulation needs to be expanded and the nature of the policy stance.
An inter-ministerial group, including members from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), is working on broader cryptocurrency policies.
"The policy stance involves consulting relevant stakeholders. Therefore, it should be transparent, outlining the discussion paper and the issues at hand, so that stakeholders can provide their perspectives," said Ajay Seth.
India's plan to release this study is in response to G20 countries' endorsement of the International Monetary Fund (IMF) and Financial Stability Board (FSB) guidelines during India's G20 presidency last year.
The IMF-FSB synthesis paper advised against adopting opposing approaches, such as outright bans on crypto activities, highlighting the challenges in enforcing such measures.
Formation of Inter-Ministerial Group
In a statement to CryptoPotato, Sumit Gupta, co-founder of CoinDCX, expressed optimism about the Indian government's decision to establish an Inter-Ministerial Group to review and release the consultation paper. Gupta remarked, "This initiative is a significant step towards shaping the future of India's rapidly growing and dynamic Web3 industry."
"As key stakeholders in this sector, we urge the government to actively seek input from domestic businesses. Partnering with local businesses will ensure that the regulatory framework is robust, inclusive, and supportive of innovation," he added.
Indian Finance Minister Nirmala Sitharaman: Crypto Can't Be a Currency Without a Regulatory Framework
Previously, Indian Finance Minister Nirmala Sitharaman clarified the country's stance on cryptocurrencies at the India Today Conclave 2024 last week.
"Revisiting our position? Our position has always been that assets created in the name of crypto can be traded, speculated upon, and used for various purposes," said Sitharaman, responding to questions about whether India would reassess its stance on cryptocurrencies in light of Bitcoin's price recovery.
"We haven’t regulated it yet. We still haven’t," she stated, according to News.bitcoin on March 18, 2024.
She emphasized that cryptocurrencies cannot be considered a currency. "That’s always been my stance and the position of the Indian government," she added.
Sitharaman stressed that currency in India must be issued by the central bank, describing cryptocurrencies as “assets created for speculation, trading, or other purposes, and they remain unregulated in India."
She continued, "That’s why we believe this issue deserves attention at the G20 forum, as it is driven by technology and will impact cross-border payments and other areas."
She warned, "If one country regulates it (crypto) and another does not, it could become an easy way to move money, engage in undesirable activities, or fund drugs, terrorism, and so forth."
"This has been well-received, and I am confident a regulatory framework will emerge," she concluded.
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