India’s financial regulators, including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), are teaming up to develop a new cryptocurrency policy. They are working on a detailed discussion paper, set to be released in the third quarter of 2024.
This collaborative approach marks a shift from previous restrictive views towards more inclusive and supportive regulations for cryptocurrencies. The move towards a comprehensive policy signals a significant change in India’s stance on the crypto industry.
India’s RBI and SEBI Collaborate on New Cryptocurrency Policy Framework
India’s path to a structured cryptocurrency policy has reached a crucial stage with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) working together on a comprehensive framework. This collaboration is expected to result in a discussion paper by Q3 2024, which could significantly influence India’s approach to digital asset regulations.
The upcoming discussion paper will seek input from various stakeholders to develop well-rounded cryptocurrency regulations. Currently, regulatory measures focus mainly on anti-money laundering (AML) and counter-terrorism financing (CTF) protocols, which were applied to cryptocurrencies starting in March 2023. The new paper aims to address wider regulatory concerns and establish more detailed guidelines for the crypto industry.
India’s G20 Presidency and Collaboration Shape Future Cryptocurrency Policy
During India’s G20 presidency in 2023, global recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB) were recognized and will influence India’s forthcoming cryptocurrency policy. The discussion paper being developed will align with these international standards and aim to define an appropriate regulatory scope, reflecting the diverse views of Indian authorities.
While the Securities and Exchange Board of India (SEBI) shows openness to regulated private virtual asset trading, the Reserve Bank of India (RBI) remains cautious about potential macroeconomic impacts. This collaborative effort represents a significant step towards crafting a balanced and comprehensive regulatory framework. By addressing various perspectives and concerns, the upcoming discussion paper is set to play a pivotal role in shaping India’s future approach to cryptocurrency regulation.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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