India plans to publish a discussion paper on its crypto policy by September 2024. Ajay Seth, Secretary of Economic Affairs, announced that the paper will clarify the government’s stance and seek input from stakeholders.
The inter-ministerial group, including the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI), is drafting this comprehensive policy. Historically, the RBI has pushed for a complete ban on cryptocurrencies, while SEBI advocates for a multi-agency regulatory approach.
Notably, the IMF-FSB synthesis paper, endorsed by G20 finance leaders, advises against an outright ban, which might influence India’s draft policy. Sumit Gupta, co-founder of CoinDCX, praised the move, stressing the importance of engaging local businesses.
Currently, India imposes a 30% tax on crypto profits and mandates licensing for service providers. This policy paper is crucial for shaping a robust and inclusive regulatory framework, supporting innovation while ensuring economic stability.
