Indian Government Panel to Roll Out Crypto Consultation Paper, in a Broader Regulatory Push – Report

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Sujha Sundararajan

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Sujha Sundararajan

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Last updated:

August 22, 2024 05:10 EDT

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The Indian government is reportedly planning to roll out crypto consultation paper in September-October 2024, per a local report.

CNBC reported on Thursday that an exclusive panel led by the Secretary of the Department of Economic Affairs (DEA) will release the consultation paper. The paper will seek comments from industry players and stakeholders regarding the regulatory treatment of crypto assets in India.

Sources noted that the move aims to foster the government’s “ongoing efforts” to bring a regulatory clarity to crypto assets.

The news arrives weeks after India’s Ministry of Finance said no plans to regulate the sale of crypto assets. However, it said that Virtual Digital Asset Service Providers (VDASPs) are reporting entities for anti-money laundering (AML) purposes.

Last year, the Financial Stability Board (FSB) advanced policy and regulatory recommendations for cryptos, which were incorporated into the G20 roadmap.

The country’s Finance Ministry also announced to consider country-specific characteristics and risks before implementing any crypto regulatory measures. As reported earlier, the country’s Finance Minister highlighted the global cooperation on crypto policy regulations at the G20 Finance Minister-Central Bank Governor meeting in Maracas (Morocco), held under India’s presidency.

In a previous conversation with Cryptonews, Saravanan Pandian, Founder and CEO of KoinBX crypto exchange, said that there’s “certainly potential for positive change in India’s crypto policy in the near future.”

India’s crypto policy framework goals indicate “willingness to engage with the growing importance of crypto assets,” he added.

India Ramps-Up to Crypto Regulations Despite RBI’s Faint Moves

The Reserve Bank of Indi (RBI), the country’s central bank, have had a history of opposing and criticizing cryptocurrencies in the past.

For instance, an RBI official said early this year that cryptos are not “currencies” as they have no underlying value.

However, one good move was that the country geared-up framing a crypto policy last September with global consensus, during its presidency of the G20 nations. Additionally, Prime Minister Narendra Modi also stressed on a need for a global framework on cryptocurrencies during the B20 Summit India 2023.