India reconsiders crypto stance amid global policy shifts
Shifting global policies and growing domestic interest have prompted India to re-evaluate its cryptocurrency regulations.
India is reassessing its position on cryptocurrencies as other countries adopt more favourable policies. The review comes after US President Donald Trump’s recent moves to overhaul digital asset regulations, prompting Indian authorities to revisit their own discussion paper, initially scheduled for release in September 2024. Economic Affairs Secretary Ajay Seth highlighted the need for a broader perspective, given that cryptocurrencies transcend national borders.
Government scrutiny of digital assets remains strong despite increasing local investment in the sector. India’s Financial Intelligence Unit issued compliance notices to offshore exchanges in late 2023, leading to Binance paying a fine of 188.2 million rupees in June 2024. The regulatory approach has been strict, with high trading taxes discouraging domestic participation.
Differing views persist within Indian authorities regarding digital currencies. While market regulators have suggested a multi-agency framework for oversight, the central bank continues to express concerns about potential economic risks posed by private virtual assets. The ongoing policy review suggests that any regulatory adjustments will take global trends into account.