Government of India Plans to Release Key Crypto Policy Document in Coming Weeks

In June the Indian government plans to release a detailed discussion paper which will present possible regulatory approaches for cryptocurrency assets.

According to a government official who spoke with The Economic Times the crypto assets discussion paper is nearly complete and it might become available for public feedback next month.

The paper to be published soon will integrate findings from documents produced by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The paper will examine different countries' regulatory frameworks for governing cryptocurrencies.

A confidential source informed ET that the discussion paper on crypto assets is currently being finalized for public feedback next month.

The government official emphasized that India will make its decision based on national interest considerations. The government will avoid making any hasty decisions because this industry affects multiple sectors.

The crypto industry which faced years of exclusion due to illicit activity concerns is now starting to pick up momentum. Prominent Indian exchange executives have observed a substantial shift in government engagement following Donald Trump’s re-election due to his pro-cryptocurrency stance.

Esya Centre's newest analysis shows that current regulations have moved almost 90% of Indian cryptocurrency trade operations to offshore locations. The regulations have diminished India's position in the rapidly growing worldwide cryptocurrency market. The existing tax framework suppresses innovation while driving users to operate in unregulated markets according to industry leaders.

India’s top court demands crypto rules

The US government launched significant changes to benefit the crypto community. Trump’s administration has shifted from Biden-era crypto skepticism by pardoning digital assets leaders while initiating a national bitcoin reserve and urging Congress to enact crypto-friendly legislation.

The United States Senate passed stablecoin legislation under Trump while the European Union has begun implementing the MiCA regulation in real time. The Supreme Court of India declared that continuous avoidance of this matter is no longer permissible.