The Indian government is working on a policy for cryptocurrency regulation in the country and has decided to consult the World Bank, IMF, and state regulators. An official in the country’s finance ministry corroborated the statement and added that the government is reaching out to stakeholders both outside and within the state.
Consultation With RBI, World Bank, IMF, and SEBI On Crypto Regulation
According to Mint’s publication on Thursday, officials of the ministry of finance in the nation are working on a crypto policy. They have met with stakeholders such as the World Bank, IMF (International Monetary Fund), India’s Reserve Bank, and SEBI (Securities and Exchange Board of India).
“We have prepared a consultation document on cryptocurrencies,” an official noted, adding: we have met with institutional stakeholders both inside and beyond the nation. We are combining inputs from all parties to see how we can incorporate them into the nation’s crypto policy.
“We will revise the consultation document in light of the RBI’s and SEBI’s answers,” the official stated.
Consultation Document To Be Ready In Six Months
The consultation paper by the finance ministry, which is anticipated to be completed within six months, will address cryptocurrency usage, associated risks, and its status as an investment asset, the publication remarked, adding that it would serve as the foundation for a crypto policy in India.
Nirmala Sitharaman, India’s minister of finance, has mentioned on many several occasions that the country is still on the fence concerning crypto regulation or prohibition. Meanwhile, the state has decided that crypto income should be taxed at 30%. Also, cryptocurrency transactions will be subject to a 1% charge deducted from the source of the transaction.
According to the publication, Nada Choueiri, the mission leader of IMF in India, cryptocurrencies presented significant concerns, especially to economic stability. Without commenting mainly on India’s crypto policy, she stated:
“Cryptocurrency assets may be used to facilitate financial crimes, terrorist funding, and other criminal acts. Unless adequate regulatory measures are established, the virtual currency ecosystem may face significant consumer protection concerns, including corruption and cyberattacks.”
Gita Gopinath, the Deputy Director of the IMF, has said that much more work is required in the area of regulation for cryptocurrency and virtual currency. “We have undoubtedly witnessed a rise in the usage of cryptocurrencies” prior to the conflict between Ukraine and Russia, she continued, noting that “it occurs more often in developing countries than in developed ones.”
“Regulation is critical for the crypto industry if it should be used for investment purposes. Also, the laws guiding other investment vehicles should apply to crypto as well,” Gopinath remarked in December.
Additionally, Bloomberg News reported on Friday that the Indian government would draft cryptocurrency laws only if a worldwide agreement on digital currencies is established.