India is ready to embrace crypto regulations, as the Department of Economic Affairs (DEA) is expected to release a pivotal consultation paper between September and October. According to reports, the paper will seek opinions from stakeholders on the country’s crypto regulatory framework.
India has been endeavoring to provide comprehensive regulatory guidelines for the crypto market. The consultation paper, which will be released by a panel led by the Secretary of the DEA, is expected to mark a landmark moment in India’s crypto regulation.
India’s Regulatory Moves
Despite India’s reluctance to regulate crypto sales and purchases, the country has actively attempted tackling the threats and risks involved in crypto trading. In a parliamentary meeting on August 5, Pankaj Chaudhary, minister of state in India’s Ministry of Finance, posited that the country has no plans to regulate crypto trading. In addition, the minister revealed that the government doesn’t hold any details regarding the Indian crypto holders. He cited, “Crypto assets or Virtual Digital Assets (VDAs) are unregulated in India and the government does not collect data on these assets.”
First Crypto Regulation in India
India announced its first crypto regulatory law in 2022. The government mandated a 30% tax on unrealized crypto gains. However, the implementation of the tax rule had a negative impact on the country’s overall crypto market. While the country imposed additional taxes, a majority of the Indian traders chose crypto-friendly markets, leading to a grave decline in India’s trading volume.
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G20 Nations’ Crypto Regulations
India’s proposal to regulate cryptocurrencies aligns with the G20 nations’ unified stance on crypto regulations. India’s Finance Minister Nirmala Sitaraman stated in 2023 that the G20 nations have embraced a unified approach to regulating crypto assets. She stated, “Given the understanding that globally now all of us are on the same page about how regulations can happen, country and their specific legislative arrangements will also have to be worked out.”
