India is taking a fresh look at cryptocurrencies in response to changing global perspectives. This review may delay the release of the anticipated discussion paper on cryptocurrencies.
India's Crypto Stance Reconsideration
India is reconsidering its stance on cryptocurrencies as countries alter their views. A discussion paper initially set for release in September 2024 might be delayed. Economic Affairs Secretary Ajay Seth stated that the current global landscape necessitates re-evaluating India's crypto policies.
Influence of Global Trends
With increasing crypto support from countries like the United States, India too is considering changes. Unilateral regulations have been less effective due to the cross-border nature of digital assets. Recently, former US President Donald Trump initiated a cryptocurrency working group to draft new regulations.
Active Crypto Market in India
India's cryptocurrency market remains active despite strict regulations and high trading taxes. Last year, the FIU shut down offshore exchanges for non-compliance with local regulations. In December 2023, show-cause notices were issued to nine foreign exchanges, including Binance, which was later fined 188.2 million rupees ($2.25 million) in June 2024.
India is considering international changes in the crypto industry to update its policies, potentially shifting local market dynamics and regulatory focus.
