Kevin Helms
A student of Austrian economics, Kevin found 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.
India to introduce crypto measures this year, government official says – regulation Bitcoin News
The Indian government plans to introduce “measures around crypto” this year, according to the country’s Finance Secretary Ajay Seth. India’s finance minister says cryptocurrency regulation will be discussed in her upcoming G20 meeting with finance ministers and central bank governors.
India may introduce crypto measures this year
India’s Economic Secretary Ajay Seth said on Saturday at a post-budget press conference in Mumbai that India will introduce “measures around crypto” this year.
“The technology of cryptoassets such as blockchain and others can be used, but its use in the financial sector may have several risks,” he told local media. The official elaborated:
During this year measures around crypto will be brought out.
The finance secretary added: “In India, nobody is talking about using crypto as a currency. The risk is in using it as a token.”
The Indian government has been working on crypto legislation for several years. A draft crypto law was unveiled in 2019, but it was never taken up in parliament.
India to discuss crypto legislation with G20 countries
Indian Finance Minister Nirmala Sitharaman said on Friday in an interview with Network18 Group after the budget that she will look at developing a global standard operating procedure (SOP) for the regulation of crypto assets in her upcoming G20 meeting. Under India’s presidency, the first meeting between the G20 finance ministers and central bank governors will be held on 24-25 February in Bengaluru.
Sitharaman said:
We will look at the global SOP to be available and agreed upon for the regulation of crypto-assets, while recognizing the central bank as the authority to issue cryptocurrencies.
“The rest of the assets created outside use very useful financial technologies. Even they must be discussed because regulations cannot be made by one country individually, it must be a collective action because the technology does not break any borders, said the finance minister.
During his Budget speech last week, Sitharaman did not mention crypto assets. However, this year’s Finance Bill included several new tax penalties related to crypto tax deducted at source (TDS). This year’s Economic Survey 2023 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 recommended banning cryptocurrencies such as bitcoin and ether. RBI Governor Shaktikanta Das recently noted that crypto could undermine the central bank’s authority:
If crypto is allowed in India, the RBI will lose control over monitoring transactions. Crypto, masquerading as a financial asset, is a completely misplaced argument.
The Indian central bank governor has also warned that crypto could lead to the next financial crisis if it is not banned. Meanwhile, the RBI is currently piloting its digital currency (CBDC), the digital rupee.
Do you think India will introduce measures around crypto this year? Let us know in the comments section below.
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