The Indian government has responded to questions during a parliamentary session regarding crypto regulation in India. The government emphasized the valuable guidance provided by the IMF-FSB synthesis paper presented at the G20 summit, noting that this paper offers a framework for both G20 and non-G20 nations to develop “clearer policies on crypto assets.”
Government Provides Indian Crypto Framework Progress Update
The Indian government provided some answers on Monday regarding cryptocurrency regulation in India. The Indian government has been grappling with the question of crypto regulation since July 2019, when a draft bill was introduced.
Parliament Member Rajeev Shukla asked the Minister of Finance in Rajya Sabha, the upper house of India’s parliament, whether the government “intends to take further measures to provide for effective regulation of crypto assets in the country in sync with the New Delhi Leaders’ Declaration adopted by the G20 countries.”
Minister of State in the Ministry of Finance Pankaj Chaudhary answered the question on Tuesday. He explained: “On the crypto asset agenda, the New Delhi Leaders’ Declaration welcomed the International Monetary Fund (IMF) – Financial Stability Board (FSB) synthesis paper, including a roadmap that supports a coordinated and comprehensive policy and regulatory framework on crypto assets, taking into account the full range of risks and risks specific to the emerging market and developing economies (EMDEs).” He added:
The IMF-FSB synthesis paper was presented during the Leaders’ Summit and provides valuable guidance to not just the G20 but also the non-G20 jurisdictions in moving forward with clearer policies on crypto assets.
“The IMF-FSB synthesis paper also emphasizes that EMDEs face higher risks from crypto assets,” the minister stressed. “The IMF-FSB synthesis paper gives more flexibility to the EMDEs who may take additional targeted measures depending on their country-specific characteristics.” Examples of these characteristics include the size of the economy and financial system, regulatory priorities, institutional quality and capacity, as well as the level of financial integration into the global economy.
Minister Chaudhary concluded:
Accordingly, all jurisdictions, including India, are expected to evaluate the country specific characteristics and risks in order to reach an appropriate consideration of any necessary measures on crypto assets.
Last week, the Indian government also answered questions regarding the government’s support of Web3 startups and the number of crypto service providers that are registered with the country’s Financial Intelligence Unit.
When do you think the Indian government will finally introduce a regulatory framework for crypto? Let us know in the comments section below.
