India is considering updating its crypto policy in light of the changing global sentiment towards digital assets, with a focus on aligning with international regulatory standards.
India's Response to Global Changes
According to Reuters, the Indian government is reassessing a discussion paper on cryptocurrencies initially set for release in September 2024. Economic Affairs Secretary Ajay Seth highlighted the borderless nature of digital assets, indicating that India must avoid unilateral actions.
Action Plan and International Context
This policy review follows President Trump’s executive order on digital assets, establishing a regulatory framework to promote innovation. Despite this, the Union Budget 2025 presented by Finance Minister Nirmala Sitharaman did not mention cryptocurrencies directly but introduced stricter tax regulations for cryptocurrency trading.
Financial Stability Concerns
The Reserve Bank of India (RBI) has also expressed concerns about the risks of cryptocurrencies, especially stablecoins, in its 2024 Financial Stability Report. The RBI warned that unregulated digital assets could undermine monetary control and pose a threat to economic stability.
India is closely monitoring international practices and updating its regulatory approaches to cryptocurrencies, aiming for a balanced policy that considers both innovation and risk.
