Great news – India is one step closer to introducing regulatory measures surrounding the burgeoning cryptocurrency market this year! On Saturday, following the budget press conference in Mumbai, India’s Economic Affairs Secretary Ajay Seth revealed that the Indian Government would be unveiling crypto measures this year.
As with many countries, one of India’s primary concerns with cryptocurrencies is the ability for them to be used as tokens for financial gain. It has been reported that cryptocurrency regulation will be discussed during the G20 meeting chaired by India’s finance minister.
The purpose of the proposed Indian measures is to ensure that the technology of blockchain and other crypto assets can be used but that its use as a currency is safely monitored. So far, Mr. Seth has confirmed that India is not planning to allow cryptocurrency to be used as a currency.
Gearing Up: India to Spice up G20 with Crypto Law Talk!
Nirmala Sitharaman, India’s Finance Minister, stated in a post-budget interview with Network18 Group on Friday that she will be examining the formulation of a global SOP for supervising digital assets at the upcoming G20 meeting; the gathering of G20 finance ministers and central bank governors, occurring on Feb. 24-25 in Bengaluru and led by India.
In her Budget speech last week, Union Finance Minister Nirmala Sitharaman did not address crypto assets. Nevertheless, the current year’s Finance Bill has added several new tax penalties on crypto tax deducted at source (TDS). Likewise, the 2023 Economic Survey accentuated the need to create a unified methodology for the regulation of the crypto ecosystem.
Earlier, the governor of India’s Central Bank has cautioned that cryptocurrency could cause the following economic crisis unless it is prohibited. On the other hand, the Reserve Bank of India (RBI) is in the process of developing its own Central Bank Digital Currency (CBDC), the Digital Rupee.