Specifically, India is set to evaluate and determine its stance on cryptocurrency in the forthcoming months, taking into account the perspectives of global leaders regarding an acceptable framework for cryptocurrency regulations. A senior official from India's Finance Ministry made this statement during discussions at the Group of Twenty (G20) summit according to coindesk.com.
The country's Secretary of the Department of Economic Affairs addressed a gathering of journalists on the sidelines of the G20 leaders' summit, stating that India's official position will be established in the coming months. He emphasised that the G20 had established a framework for assessing the risks associated with cryptocurrencies, and India would analyse the consensus reached by global leaders to formulate a suitable policy.
India's approach to cryptocurrency has been subject to scrutiny for an extended period, having initially witnessed a flourishing cryptocurrency industry, which subsequently faced numerous challenges, including heavy taxation, a crypto market downturn, a 'shadow ban,' anti-money laundering regulations, and enforcement actions against major cryptocurrency exchanges. India's interest in shaping global cryptocurrency regulations became apparent during its G20 presidency, ultimately resulting in a synthesis paper jointly produced by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
Coindesk reports that these recent statements suggest a potential shift in India's approach, hinting that the country may consider formulating its own cryptocurrency legislation. This would mark a significant development since India had previously shelved plans for comprehensive cryptocurrency legislation in early 2022.
Indian officials have previously conveyed that formal legislation in the form of a bill may not be necessary. Furthermore, while the FSB mandates a review of the implementation status of its recommendations by the end of 2025, India has already introduced anti-money laundering regulations and a taxation framework for cryptocurrencies.
In contrast to the stance of the nation's central bank, which has advocated for a cryptocurrency ban, the government has not indicated a definitive position on the matter. At the time of writing, there are no indications that the government is inclined towards imposing a blanket ban, as suggested in the synthesis paper.
Before the G20 Leaders' Summit, India had released its presidency note on cryptocurrency, an official document outlining its stance on the subject as preliminary recommendations before the finalisation of the synthesis paper.
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