indian crypto legislation this year

The Indian government plans to introduce “cryptocurrency-related measures” this year, according to Economic Affairs Minister Ajay Seth. India’s finance minister has said that her upcoming meeting of G20 finance ministers and central bank governors will discuss cryptocurrency regulation.

India May Roll Out Cryptocurrency Measures This Year

India will roll out “measures around cryptocurrencies” this year, Economic Affairs Minister Ajay Seth reportedly told a post-budget press conference in Mumbai on Saturday.

Local media quoted him as saying: “Crypto-asset technology such as blockchain can be used, but its use in the financial field may have multiple risks.” The official details:

Over the course of the year, measures around encryption will be rolled out.

The Minister of Economic Affairs added: “In India, no one is talking using cryptocurrencies as money. The risk is using them as tokens.”

The Indian government has been working on encryption legislation for years. A draft cryptocurrency bill was published in 2019, but was never discussed in parliament.

India to Discuss Crypto Legislation with G20 Countries

India’s finance minister, Nirmala Sitharaman, reportedly said in a post-budget with Network18 Group on Friday that she will consider developing a global standard operating procedure (SOP) to regulate crypto assets at the upcoming G20 meeting. The first meeting of G20 finance ministers and central bank governors under India’s presidency is scheduled for February 24-25 in Bengaluru.

Sitharaman says:

We will study the availability and agreement of a global SOP to regulate crypto assets while acknowledging that central banks are the authority for issuing cryptocurrencies.

“The rest of the assets that are created externally are using very useful financial technologies. Even those have to be discussed because regulation cannot be done by one country alone, has to be done collectively because technology doesn’t cross any borders,” the finance minister noted .

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In his budget speech last week, Sitharaman made no mention of crypto assets. However, this year’s finance bill includes several new tax penalties related to the Cryptocurrency Tax Deducted at Source (TDS). This year’s 2023 Economic Survey also highlighted the need for “a common approach to regulating the crypto ecosystem.”

India’s central bank, the Reserve Bank of India (RBI), has repeatedly suggested a ban on cryptocurrencies such as bitcoin and ether. RBI Governor Shaktikanta Das recently pointed out that cryptocurrencies could undermine the authority of central banks, saying:

If India allows cryptocurrencies, the RBI will lose control over monitoring transactions. Cryptocurrencies masquerading as financial assets is a completely false argument.

The Governor of the Central Bank of India also warned that if cryptocurrencies are not banned, could lead to the next financial crisis. Meanwhile, the RBI is currently piloting its central bank digital currency (CBDC), the digital rupee.

Do you think India will introduce measures around encryption this year? Let us know in the comments section below.

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Kevin Helms

Kevin, an Austrian economics student, discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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