The Indian government has decided to delay the implementation of a full crypto law, sparking extensive discussions both domestically and internationally.
Why India Delayed the Full Crypto Law
The Indian government has opted for a 'wait-and-watch' approach, citing systemic risks and concerns regarding monetary sovereignty. This decision reflects both caution and calculation.
The Reserve Bank of India (RBI) has consistently expressed worries over cryptocurrencies becoming too deeply entrenched in the economy.
Systemic Risks Highlighted
Systemic risks are at the heart of this cautious stance. Unlike equities or bonds, cryptocurrencies are decentralized and global by nature.
While banning crypto completely is not considered effective, peer-to-peer and decentralized exchange trading would continue underground. Full crypto regulation could create new vulnerabilities.
Industry and Public Reaction
Crypto entrepreneurs in India are pushing back. Nischal Shetty, co-founder of WazirX, expressed on X (formerly Twitter): 'We need clarity, not confusion. Holding back a full crypto law only prolongs uncertainty for builders and investors in India.'
International observers echo this frustration, arguing that regulatory clarity is essential to prevent a brain drain as Indian developers and startups increasingly move abroad.
India's decision to delay a comprehensive crypto law reflects a strategic balance between innovation and financial stability. While taxation and oversight continue, the absence of a legal framework leaves uncertainty for investors and innovators.
