India’s Crypto Discussion Paper on Hold Due to Other Priorities

As a seasoned crypto investor with roots deeply entrenched in the Indian market, I can’t help but feel a mix of anticipation and frustration as we navigate through yet another delay in India’s crypto policy stance. Having ridden the waves of market fluctuations and regulatory uncertainties, I’ve learned to be patient and adaptable.

It appears that India has not released a policy document regarding cryptocurrencies as of now, as government officials are currently focusing their efforts on other important matters, based on information from two sources privy to the situation.

Originally, the document was anticipated for release by September after discussions with key partners such as the central bank and market regulators. However, although the publication is still intended, there’s currently no set deadline, according to sources who preferred to remain anonymous since the delay hasn’t yet been officially disclosed.

As a researcher, I am examining the current state of cryptocurrency regulation in India, the world’s fifth-largest economy. Unlike many other nations, India does not yet have comprehensive legislation governing cryptocurrencies. However, it has taken steps to regulate the sector by imposing high taxes and requiring crypto entities to register with the Financial Intelligence Unit (FIU-IND). This registration is intended to ensure that these entities comply with anti-money laundering (AML) and counter-terrorism financing standards established by global bodies such as the Financial Action Task Force (FATF). Despite these measures, cryptocurrencies remain largely unregulated in India.

In simpler terms, within India’s policy sphere, there are urgent matters that need attention such as the upcoming annual gatherings of the International Monetary Fund (IMF) and the World Bank at the end of this month. Furthermore, they have been juggling various international meetings with other nations, given the ongoing conflicts in regions like Russia and Ukraine, as well as Israel and its adversaries in the Middle East.

Moreover, due to it being an election year, the Finance Ministry has been occupied with preparing not just one but two budgets – an interim one in February prior to the July elections, followed by a comprehensive one afterwards. This process also involves extensive consultations throughout the nation.

Although the hack of Indian cryptocurrency exchange WazirX to the tune of $234 million took place, it appears that the public no longer views crypto legislation as an urgent matter as they did two years ago, according to popular belief.