- Public Opinion and Regulation
- Current Regulatory Measures
- Internal Divergence and Next Steps
India is gearing up for significant changes in crypto regulation with a new consultation paper set to be released between September and October 2024.
Public Opinion and Regulation
The upcoming paper will seek feedback from various stakeholders. This reflects the government’s commitment to creating a strong framework for crypto regulation. Moreover, this initiative aligns with the broader global effort, particularly within the G20, to establish a unified approach to regulating digital assets.
Current Regulatory Measures
The country currently focuses on anti-money laundering (AML) and counter-terror financing (CTF) measures, extended to crypto assets and intermediaries since March 2023. Furthermore, the upcoming consultation paper will address key policy questions, including the scope and extent of regulation in the crypto space.
Internal Divergence and Next Steps
Indian authorities are grappling with differing views on how to handle private virtual asset trading. The Securities and Exchange Board of India (SEBI) is reportedly more open to allowing such activities, while the Reserve Bank of India (RBI) remains cautious, citing concerns about potential macroeconomic risks. These differing stances highlight the complexity of creating a balanced and comprehensive crypto policy.
The forthcoming consultation paper by the Department of Economic Affairs will be a significant step towards developing a more detailed and inclusive regulatory framework for cryptocurrencies in India.
