People especially those interested in Crypto currencies are waiting for a long time for Government of India coming out with laws, rules, and regulations for crypto assets / cryptocurrencies. To calm their nerves, a top government functionary, economic affairs secretary Ajay Seth told news reporter that Indian Government has almost prepared a consultation paper on crypto assets / cryptocurrencies, according to a report in Indian Express.
Consultation Paper on Crypto Almost Ready
According to Mr. Ajay Seth, during preparation of this consultation paper, views from many institutions including World Bank and IMF have been sought to be taken into consideration. He reiterated Indian Government’s oft repeated stance that Crypto needs to be regulated but any regulation has to be in coordination with regulations of other countries.
That is why, he stated, before finalizing the regulations on crypto, India would look at regulations of other countries as well so that these regulations should be in harmony with global regulations to be effective across borders.
Prime Minister Modi Calls for Regulation of Crypto
In fact, India’s Prime Minister Mr. Narendra Modi has already told in a Sydney conference in November 2021 about the need of the countries working together on regulating crypto. While talking about Crypto, Mr. Modi said, “It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth.”
Again, speaking in January, 2022, at World Economic Forum’s Davos Agenda 2022 virtual event, the Prime Minister Mr. Modi spoke about crypto. He said, “The way technology is related to it (cryptocurrency), any decision taken by a particular country will not be adequate to resolve the challenges it poses. We need to keep a uniform thought process on it.”
India, for the last few months, has been taking steps that seem to tightening noose around crypto players who in absence of any regulations, have been able to enlist millions of investors from India. To discourage people from investing in cryptocurrencies and other crypto assets like NFTs, Indian Government has announced several harsh measures, such as imposing 30% tax on any gains made in crypto assets including cryptocurrencies, banning celebrities from endorsing crypto assets etc.
India has also announced its intention of bringing its own central bank digital currency soon.
Slow Progress in Framing Rules on Crypto
However, the sluggish manner in which the government officials in India are approaching towards framing regulations on crypto has disappointed many. Despite being aware of millions of Indians getting swept in crypto mania, there are not clarity about Indian government’s definite view on crypto, what to talk of regulations.
Even after Mr. Modi’s pitch for rules and regulations for crypto and call for saving youth from spoiling their future, the government officials are talking about coming close to finalizing a consultation paper on crypto. A Consultation paper is merely a policy document which is circulated among general public by an institution, in present case, government to seek their opinions and feedback on any specified subject on policy formulation.
According to Mr. Ajay Seth, the so-called consultation paper is “fairly ready”, meaning thereby that it is not yet finalized. It has also not been clarified if this consultation paper would be the basis for any law or regulation on crypto in India.
