The legislation process regarding crypto has continued for a while, and various governments have moved forward. They have the motive of making crypto investments easier and safer for investors. The Indian government has also been working on crypto consultation, taking all stakeholders’ views. The process continued for a while, and now the economic affairs secretary has announced that the crypto consultation process is complete as the paper is fairly ready.
India had taken some preemptive steps earlier as it had imposed crypto taxes a month back. There were problems regarding consensus on crypto legislation which halted the process. The main reason for cynicism was the global crypto market’s problems. Various ministries in the Indian government have considered the implications of legislation, and the government has prepared a ‘crypto consultation paper.’
Here is a brief overview of the crypto consultation process in India and how it will impact the crypto market in the future.
Crypto consultation and developments in India
India has remained passive in crypto legislation compared to other nations globally. It took time to consider all the relevant details and possible implications for the state before taking a final step. The recent update about crypto consultation has come from Ajay Seth, the economic affairs secretary.
Seth provided updates to the media regarding the government’s crypto policy. He talked to CNBC TV18 about the crypto consultation paper and other details. According to Seth, their consultation process not just included the national stakeholders, but they also discussed it with IMF and World Bank. Thus, they have taken a deep dive to ensure that it doesn’t fire back in longer and shorter runs.
He said that they would be soon in a position to finalize the crypto consultation paper. They have been working on a crypto regulatory framework which will be discussed in the mentioned consultation paper. They have discussed the plans with the Reserve Bank of India, SEBI (Securities and Exchange Board of India), etc., and global financial organizations.
IMF noted that crypto legislation was one of the top priorities of the Indian government. The Indian government has plans for a broader agenda as they have mentioned digital assets instead of specifically mentioning just crypto.
A step forward in legislation
According to Mr. Seth, crypto consultation and legislation are all major economies’ priorities. US Treasury and various other global organizations are discussing the same thing. According to him, they are taking note of all changes on the global level, and they would follow the impacts of the global paradigm.
He believed that the world needs to have a consensus regarding crypto. It will help regulations with little differences, making them easier to implement and follow. He said that India would follow updates from across the world and then work on its crypto policy. The current crypto consultation is part of the wider program to work on crypto legislation.
Previously, the Indian finance minister had said that India wouldn’t rush to finalize the crypto policy. They have focused on collecting information, processing it, and making the decision in its light. Thus, it would be a tedious process to look into all the necessary details before going to conclusions. They would prefer to look into details of crypto policies of major economies to ensure that theirs is flawless and has little negative implications.
India has been working on preparing the ground for its crypto policy. The initial step in this regard is crypto consultations which have continued for a while. According to the available updates from the economic affairs secretary, the crypto consultation paper is almost ready. He said that they had discussed the policy with regional stakeholders and international bodies. The Indian government aims to follow a flawless policy for crypto that is workable in the longer run.