India may float paper on crypto assets norms in June
India is likely to float a discussion paper next month outlining policy framework options for crypto assets amid growing acceptance for them, thanks in large part to US President Donald Trump embracing digital currencies, people familiar with the matter said. The discussion paper is likely to draw from the synthesis paper prepared by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) while seeking opinions on practices being adopted by various jurisdictions. “The discussion paper on crypto assets is being given finishing touches,” said one of the persons cited, adding that it could be posted for public comments next month. India has an ambiguous position on cryptocurrencies. In FY23 budget, India imposed a 30% tax on gains from virtual digital assets while clarifying this didn’t give legal validity to them. ‘No Knee-jerk Decision’ Later, it mandated that crypto exchanges operating in India must register with the country's Financial Intelligence Unit. The Reserve Bank of India has urged caution over possible misuse of cryptocurrencies, including money laundering and terror financing, and is establishing its own Central Bank Digital Currency (CBDC) as a safer alternative. The Centre is expected to firm up its stance on crypto assets only after an in-depth discussion on issues related to them with all stakeholders and evaluating regulatory frameworks in other countries.
“India will take a call keeping in view its own national interest,” said a senior government official. “No knee-jerk decision would be taken in view of the wide ramifications of this industry.” Bharti Group chairman Sunil Mittal also made a strong case for a crypto framework on Thursday. “Look at the case with crypto now. Crypto, in the last six to eight, 10 weeks has started to move at a pace which has never been seen before, when the Trump administration has been supporting cryptocurrencies,” Mittal said, adding that India will have to get a handle on it. “So far, the position was no... crypto will not be allowed. We will probably try our own digital currency. But I think with the US moving so fast, you need to have strong regulations, policies, look at what’s going on in the world, and then look at and see what impact it has,” he said. Washington Turnaround The US, a major opponent of such assets under the Biden administration, is now eyeing pro-crypto legislation and has already set up a strategic bitcoin reserve. Notably, the Trump administration has also pardoned Ross Ulbricht, the founder of Silk Road, an online dark web marketplace that was key to the early growth of bitcoin. US Vice President JD Vance called on the crypto industry to maintain pressure on Congress to pass pro-crypto legislation supported by the White House. He was speaking at a bitcoin conference in Las Vegas on Wednesday. At the same conference, Pakistan announced the establishment of its first government-backed strategic bitcoin reserve while inviting investment in the country's crypto markets. (With inputs from Agencies)
“India will take a call keeping in view its own national interest,” said a senior government official. “No knee-jerk decision would be taken in view of the wide ramifications of this industry.” Bharti Group chairman Sunil Mittal also made a strong case for a crypto framework on Thursday. “Look at the case with crypto now. Crypto, in the last six to eight, 10 weeks has started to move at a pace which has never been seen before, when the Trump administration has been supporting cryptocurrencies,” Mittal said, adding that India will have to get a handle on it. “So far, the position was no... crypto will not be allowed. We will probably try our own digital currency. But I think with the US moving so fast, you need to have strong regulations, policies, look at what’s going on in the world, and then look at and see what impact it has,” he said. Washington Turnaround The US, a major opponent of such assets under the Biden administration, is now eyeing pro-crypto legislation and has already set up a strategic bitcoin reserve. Notably, the Trump administration has also pardoned Ross Ulbricht, the founder of Silk Road, an online dark web marketplace that was key to the early growth of bitcoin. US Vice President JD Vance called on the crypto industry to maintain pressure on Congress to pass pro-crypto legislation supported by the White House. He was speaking at a bitcoin conference in Las Vegas on Wednesday. At the same conference, Pakistan announced the establishment of its first government-backed strategic bitcoin reserve while inviting investment in the country's crypto markets. (With inputs from Agencies)
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