The future shapeshifter of the monetary world, cryptocurrency, is again making headlines since India has recently indicated that it will begin to form its own position on digital currencies, based on the considerations of G20 leaders. This news comes directly from a recent G20 summit, according to Ajay Seth, Secretary of the Department of Economic Affairs.
India has a history of a burgeoning cryptocurrency industry that faced setbacks through strict taxation, a so-called ‘crypto winter’, implicit bans on certain activities, and stringent anti-money laundering rules against major crypto platforms. Despite these hurdles, India’s stance on crypto has become more anticipated, in part, due to its objective of creating global cryptocurrency regulations during its G20 presidency. This goal was embodied in a “synthesis paper” compiled by the International Monetary Fund (IMF) and Financial Stability Board (FSB).
Interestingly, Seth’s comments hint at a new departure for India. The nation might be on the brink of creating its unique legal framework regarding cryptocurrencies. This turn of events follows the nation’s abrupt decision to halt plans to regulate crypto through legislation in early 2022. Notably, some Indian officials have shared with Coindesk that producing a standalone bill might not be necessary for India.
India has already implemented anti-money laundering rules and a tax structure for cryptocurrencies. With these, some believe that the nation has accomplished enough to satisfy the FSB’s recommendation of a 2025 implementation status review. Meanwhile, the issue remains contentious inside India. While the central bank has always supported a ban on crypto, the governmental stance has lacked clarity. However, given the recent comments from officials, it seems that an all-out ban could be off the table, at least in the immediate term.
Just prior to the G20 Leaders’ Summit, India unveiled its official take on cryptocurrency through a presidency note. This document outlined its position and crucial recommendations even before the synthesis paper was finalized.
Where exactly India will land in its opinion and regulatory plans for crypto remains an open question. But it is evident that the nation, like the world in general, is undergoing a significant transition in how it perceives and acts toward cryptocurrencies. As these regulations take shape, they could have comprehensive global implications for the future of digital currencies.
Source: Coindesk
