The Indian government is preparing to release a detailed discussion paper on regulating crypto assets in June, according to a government official who spoke to The Economic Times. This upcoming document will synthesize findings from reports by the International Monetary Fund (IMF) and the Financial Stability Board (FSB), while also examining various international approaches to cryptocurrency regulation.
The discussion paper is nearing completion and will be opened for public feedback, as revealed by a senior government official. “The discussion paper on crypto assets is being given finishing touches and will be posted for public comments next month,” the source told ET. The official emphasized that India’s decision on crypto regulation will be guided by national interests, cautioning against hasty decisions given the industry’s far-reaching implications.
“India will take a call keeping in view its own national interest. No knee-jerk decision would be taken in view of the wide ramifications of this industry,” the senior official explained. This measured approach comes after years of crypto-related activities being viewed with skepticism due to concerns about their potential involvement in illicit activities.
However, the crypto sector is now gaining momentum, with industry leaders from major Indian exchanges noting a significant shift in government engagement. This change has been particularly noticeable following Donald Trump’s re-election and his supportive stance on cryptocurrencies.
The forthcoming discussion paper represents a crucial step in India’s evolving approach to cryptocurrency regulation, balancing the need for oversight with the potential benefits of this emerging financial sector.
