India reconsiders cryptocurrency stance amid global shifts
The country’s decisions on cryptocurrency regulation could significantly impact the global crypto market.
India is re-evaluating its cryptocurrency stance as global attitudes towards digital assets shift. Economic Affairs Secretary Ajay Seth stated that the government is reviewing its discussion paper on cryptocurrency, originally set for release in September 2024, to reflect changing international regulations. The move follows recent policy adjustments in multiple jurisdictions, prompting India to reassess its approach.
Despite strict regulations, including a 30% capital gains tax and a 1% transaction levy, crypto adoption in India continues to grow. Authorities maintain strong regulatory control, with the Financial Intelligence Unit taking action against non-compliant exchanges. Meanwhile, the Reserve Bank of India remains cautious, while market regulators propose a multi-agency approach to oversight, signalling a possible shift in policy.
India’s complex relationship with cryptocurrency dates back to 2013, when the RBI first issued warnings. In 2018, a banking ban crippled the industry, only to be overturned by the Supreme Court in 2020. While the government supports blockchain and central bank digital currencies, the fate of private cryptocurrencies remains uncertain. As global regulations evolve, India’s next steps could have far-reaching consequences for the crypto sector.
