India is reviewing its stance on cryptocurrencies due to changing attitudes towards virtual assets globally, according to Ajay Seth, Economic Affairs Secretary. This review may delay the publication of a discussion paper on cryptocurrencies previously set for September 2024.
Seth pointed out that jurisdictions worldwide are reassessing cryptocurrency usage and acceptance. As these assets “don’t believe in borders,” India’s stance cannot be unilateral. The country has faced criticism for its tough regulatory approach to cryptocurrencies, despite Indians investing heavily in them in recent years.
India’s Financial Intelligence Unit issued fines to nine offshore cryptocurrency exchanges last December for non-compliance with local rules. Binance, the largest crypto exchange, was fined 188.2 million rupees ($2.25 million) after registering with the FIU.
Last year, India’s market watchdog recommended regulators oversee trade in cryptocurrencies, indicating a shift towards allowing private virtual assets. However, the nation’s central bank maintains that private digital currencies pose a macroeconomic risk.
This change in stance may impact the publication of the discussion paper on cryptocurrencies, which had been due for release this year. As the country reassesses its approach to cryptocurrency regulations, it is also taking cues from other nations making moves to overhaul their crypto policies.
Source: https://www.reuters.com/technology/india-reviewing-crypto-position-due-global-changes-senior-official-says-2025-02-02