The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) have joined forces to develop a comprehensive crypto policy, with a discussion paper due by Q3 2024. This collaboration marks a significant shift in their stance on cryptocurrencies.
An inter-ministerial group including RBI and SEBI is working on this policy, aiming to gather stakeholder input on potential regulations. This follows their G20 presidency in 2023 and aligns with guidelines from the International Monetary Fund (IMF) and Financial Stability Board (FSB).
The discussion paper will address key policy questions amid differing views: SEBI is open to private virtual asset trading, while RBI has macroeconomic concerns. This initiative follows the Supreme Court’s 2020 decision to strike down RBI’s 2018 crypto ban and a 2021 bill proposing a ban on private cryptocurrencies, which was never introduced.
The upcoming paper is expected to align with the G20-endorsed IMF-FSB framework, signaling a nuanced approach to regulation. This development indicates a potential shift from RBI’s restrictive stance, creating anticipation in the market. The strategic importance lies in balancing regulatory views to shape a comprehensive crypto policy for India.
