Longer Wait for Legislative Clarity for India’s Crypto Enthusiasts
If you are a crypto enthusiast in India, you will have to face a wait for regulatory clarity regarding cryptocurrency. Jayant Sinha, a senior lawmaker, has announced that the introduction of a specific legislative bill will be delayed.
Focus on Identifying Powerful Use Cases
In an interview with CoinDesk at IBW’ 23 Conference, Sinha emphasized the need to first identify powerful use cases for Web3 and crypto specific to India’s context. This suggests that the Indian approach will prioritize the practical applications of these technologies.
Doubts about Global Standards and Election Year
With 2024 marking an election year for major economies like India, the US, and potentially the UK, Sinha expressed doubts about the development of clear global standards for crypto during this period. This political context will likely impact the pace of regulatory developments.
India’s Approach: Policy Decisions Over Legislation
India is taking a different route in implementing a de facto regulatory framework through a series of policy decisions. Although a specific crypto bill seems unlikely in 2024, these policy decisions are expected to align with the Financial Stability Board’s recommendations by the end of 2025.
Central Bank’s Concerns
Sinha echoed the concerns of India’s central bank regarding crypto. He highlighted the challenges posed by capital controls in India, where free trading of the rupee is restricted, making it difficult to embrace crypto wholeheartedly.
Focus on Underlying Technology
Despite the cautious approach to crypto, Sinha acknowledged the revolutionary potential of the underlying Web3 technologies. He stressed that while crypto is a significant use case, it’s only one aspect of a transformative technological landscape.
Hot Take
While the longer wait for legislative clarity may be disappointing for some, it suggests a more thoughtful and cautious approach by Indian authorities. By focusing on use cases, global standards, and industry evolution, India aims to strike a balance between encouraging innovation and ensuring financial stability. The next 12 to 18 months will be crucial in shaping India’s final stance on crypto and Web 3.
By
By
By