The secretary for economic affairs of India said the government would decide on the nation’s cryptocurrency policy “in the coming months. He stated that the government will “very carefully consider and decide our policies and then take further action” after taking into account all the recommendations made regarding cryptocurrency regulation during the G20 conference.
Officials Discuss Indian Crypto Regulation
In an interview with CNBC-TV18 on Sunday, India’s Economic Affairs Secretary Ajay Seth discussed how the Indian government plans to move forward with creating a crypto framework for India.
The latest G20 leaders’ conference was held in India, and one of the main subjects of conversation there was cryptocurrency legislation. After the conference, the G20 leaders approved high-level suggestions made by the Financial Stability Board (FSB) regarding the oversight of cryptocurrencies and stablecoins. The G20 also applauded several ideas made by the IMF and other standard-setting organizations.
Seth revealed to the media outlet on Sunday that India intends to create its own cryptocurrency legislation after extensive consultations with domestic and international players. A representative of the government was quoted as saying:
We will carefully analyze these proposals and choose our own policies based on the consensus we were able to reach, or rather, develop, before moving forward with further action.
The Reserve Bank of India (RBI), India’s central bank, has advocated a ban on cryptocurrencies. The economic affairs secretary was questioned about this as well. You are asking a leading question, he retorted. It cannot be perceived in that way.
He clarified: “It’s a framework that has been put together for analyzing the risk and what would be sound policies. Now that we have that framework in mind, we can assess our own positions in relation to the direction that the world’s leaders have decided to go. Seth also revealed:
We will therefore decide in the upcoming months what our position should be in light of them.
The G20 has made major strides toward international cryptocurrency legislation, according to Seth. He referred to standard-setting body studies that offer a precise and thorough policy framework for evaluating the dangers posed by cryptoassets. They consist of reports from the Financial Stability Board (FSB), the Financial Action Task Force (FATF), the Bank of International Settlements (BIS), and the International Monetary Fund (IMF). Seth said that the G20 is aware of the hazards associated with cryptocurrencies, particularly as they relate to emerging economies.
The IMF and FSB noted in the synthesis document they produced at the request of India’s G20 Presidency that enforcing blanket bans that render all cryptocurrency-related activity unlawful could be expensive and difficult from a technical standpoint. Due to the intrinsic borderlessness of crypto-assets, they also have a tendency to raise the incentives for circumvention, which can lead to inefficiencies as well as potentially increased financial integrity problems.