India’s government is considering a shift in its regulatory approach towards cryptocurrencies, which could significantly impact the country’s adoption rate of digital currencies. The move comes after countries like Singapore and Japan have revised their stance on cryptocurrency usage.
According to Ajay Seth, India’s economic affairs secretary, the discussion is driven by changing attitudes in other jurisdictions. However, this delay has pushed back the release of a regulatory paper, which was initially scheduled for September 2024.
The country’s tightening regulations have already affected the industry. Bybit temporarily halted services in January due to Indian regulator restrictions, while Binance’s website was blocked along with eight other exchanges. However, the move did not deter users, and Binance re-entered India after paying a $2.25 million penalty.
Despite its relatively high crypto capital gains tax of 30%, India topped global crypto adoption rankings in 2024, according to Chainalysis. This is likely due to the country’s growing crypto market, which has attracted significant investment and adoption. The government’s overhaul of regulations could further boost growth in the industry.
Source: https://www.theblock.co/post/338407/indian-government-considering-cryptocurrency-policy-shift-reuters