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India’s Current Stand On Crypto Regulation: Dec 2023

The Indian government has recently provided insights into the ongoing progress concerning cryptocurrency regulation in the country, offering glimpses into the framework and considerations involved. This significant update was shared during a parliamentary session, where queries on crypto regulation were addressed.

Indian Government’s Focus on Crypto Policy Framework

During a parliamentary session on Monday, the Indian government addressed questions revolving around the status of cryptocurrency regulation in the country. The crypto regulation debate in India has been ongoing since 2019 when a draft bill was initially introduced, sparking discussions and deliberations on its viability and potential implications.

Parliament Member Rajeev Shukla probed the Minister of Finance in Rajya Sabha about the government’s intentions to align with the New Delhi Leaders’ Declaration adopted by G20 countries for effective crypto asset regulation.

IMF-FSB Synthesis Paper: Guiding Light for Crypto Policies

Responding to the queries on Tuesday, Minister of State in the Ministry of Finance, Pankaj Chaudhary, highlighted the significance of the International Monetary Fund (IMF) – Financial Stability Board (FSB) synthesis paper in shaping regulatory strategies. The New Delhi Leaders’ Declaration, which recognized this synthesis paper, welcomed a roadmap supporting a coordinated and comprehensive policy and regulatory framework for crypto assets.

Chaudhary emphasized that the IMF-FSB synthesis paper provides valuable insights not only to the G20 nations but also to non-G20 jurisdictions, offering a clear trajectory towards forming robust policies on crypto assets.

Stressing the higher risks emerging markets and developing economies (EMDEs) face from crypto assets, Chaudhary underscored that the synthesis paper allows flexibility for such economies to implement tailored measures considering specific characteristics, like economic size, regulatory priorities, institutional capacity, and global financial integration.

Evaluating Risks and Characteristics: India’s Approach

In conclusion, Minister Chaudhary outlined the expectation for all jurisdictions, including India, to evaluate country-specific risks and characteristics to devise appropriate measures regarding crypto assets. This approach aligns with a nuanced understanding of the diverse economic and regulatory landscapes, emphasizing the importance of tailored measures in addressing crypto-related concerns.

This recent government address adds to a series of inquiries addressing India’s stance on crypto regulation and its engagement with emerging technologies, reflecting a significant step towards framing a comprehensive crypto policy in the country.

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