New Delhi, Feb 2, 2025 – A senior government official stated on Sunday that India is assessing its position on cryptocurrencies given the changes in the world. This shift may defer the publication of a long-awaited discussion paper on virtual assets that many have been eagerly waiting for, which was expected in September 2024.
Ajay Seth, India’s Economic Affairs Secretary, provided context by saying a wider lens is needed in understanding digital assets because, unlike traditional financial instruments, “cryptocurrencies don’t believe in borders.” He spoke these words amidst movements in the U.S. by President Donald Trump who has made attempts to mobilize crypto-friendly policies, including overhauling regulatory frameworks and stockpiling crypto.
Indian investors have continued to invest in digital assets regardless of India’s heavy regulations, which include high taxation for crypto trading. In December 2023, the Financial Intelligence Unit (FIU) sent show-cause notices to 9 offshore exchanges for failing to comply with regulations. The largest crypto exchange in the world, Binance, faced a fine of 188.2 million Rupees (2.25 million USD) after FIU registration in June 2024.
While India’s market regulator has suggested a multi-agency approach to oversee cryptocurrency trading, the Reserve Bank of India remains wary, citing macroeconomic risks. The government’s review of its crypto stance signals a potential shift in policy, aligning with international trends favoring digital asset integration.
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