Indian Government Provides Update on Crypto Regulation
The Indian government has provided an update on the progress of cryptocurrency regulation in the country. Since July 2019, when a draft bill was introduced, the government has been working to establish clear policies for crypto assets in India.
Government Responds to Questions on Regulation
During a parliamentary session, Parliament Member Rajeev Shukla asked the Minister of Finance about the government’s plans to regulate crypto assets in accordance with the G20 Leaders’ Declaration. In response, Minister of State in the Ministry of Finance Pankaj Chaudhary highlighted the importance of the IMF-FSB synthesis paper presented at the G20 summit. This paper offers guidance to G20 and non-G20 countries in developing clearer policies on crypto assets.
Flexibility for Emerging Markets
Chaudhary emphasized that emerging market and developing economies (EMDEs) face higher risks from crypto assets. The IMF-FSB synthesis paper recognizes the need for flexibility, allowing EMDEs to take additional targeted measures based on their specific country characteristics. This includes factors such as the size of the economy, financial system, regulatory priorities, institutional quality and capacity, and level of financial integration into the global economy.
Consideration of Country-Specific Characteristics
The minister concluded by stating that all jurisdictions, including India, are expected to evaluate the country-specific characteristics and risks in order to determine the appropriate measures for regulating crypto assets. This highlights the importance of taking a comprehensive approach to crypto regulation that considers the unique circumstances of each country.
Government’s Support for Web3 Startups
In addition to addressing crypto regulation, the Indian government also discussed its support for Web3 startups and the number of registered crypto service providers with the Financial Intelligence Unit.
Hot Take: Indian Government Prioritizes Clarity in Crypto Regulation
The Indian government’s response to questions during the parliamentary session demonstrates its commitment to establishing a clear policy and regulatory framework for crypto assets in the country. By emphasizing the guidance provided by the IMF-FSB synthesis paper and the need to consider country-specific characteristics and risks, the government aims to develop comprehensive and effective measures for regulating crypto assets. This approach reflects the government’s recognition of the importance of the crypto industry and its potential risks, particularly in emerging markets. As India continues its efforts to regulate crypto assets, it is poised to contribute to the global conversation on crypto regulation and shape the future of the industry in the country.
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