The Minister of Economic Affairs of India said that a consultation paper involving the IMF and the World Bank is expected to be prepared soon. Although the details of the document have not yet been disclosed, India is likely to look to strengthen the country's commitment to “some kind of global rules” regarding cryptocurrencies.

Indian Economic Affairs Minister Ajay Seth said on Monday that a consultation paper on cryptocurrencies is in its final stages and will be presented to the federal government shortly.

Speaking at the ICONIC Week event hosted by the Department of Labor and Employment, Seth said that the International Monetary Fund and the World Bank, as well as local stakeholders, contributed to the preparation of the document.

Although the exact details of the document were not disclosed, Seth added that the country would likely be looking to solidify India's commitment to "some sort of global rules" on cryptocurrencies, Asian News International reported.

“Whichever way we want to handle digital assets, there needs to be a broad framework where all economies need to be present,” Seth said. “We need a global consensus on crypto regulation.”

India has had a mixed history with crypto and digital assets such as NFT and decentralized finance. In December 2017, the RBI and the Treasury released statements comparing cryptocurrency to Ponzi schemes. Four months later, the central bank issued a circular banning commercial banks and lenders from dealing in cryptocurrencies, as well as banning them from serving digital asset entities.

The ban was eventually overturned by India's Supreme Court in March 2020, which called the central bank's circular unconstitutional. Early last year, the Indian government said it would introduce a bill to create its own digital rupee, while at the same time banning “all private cryptocurrencies.”

The country has finally moved to profit taxation from cryptocurrencies by 30%, which drew strong criticism from market participants as unfair and potentially damaging to its domestic digital asset industry.

ru Русский