- India has no immediate plans to regulate cryptocurrency sales and purchases
- The government is assessing crypto risks and benefits, aiming for a policy by September 2024.
The Ministry of Finance states that India does not currently have any plans to regulate Cryptocurrency transactions. GM Harish Balayogi, a member of the Lok Sabha, asked questions concerning the country’s laws governing virtual digital assets (VDAs). Pankaj Chaudhary, the Minister of State for Finance, responded in writing to the legislature.
Chaudhary mentioned that the government of India does not gather data on cryptocurrencies and that they are still unregulated in the country. He declared: “At this time, there isn’t a proposal to introduce laws in the nation to control the buying and selling of virtual digital assets.
Government Evaluates Risks Without Immediate Regulation
The Minister pointed out that the Financial Intelligence Unit India (FIU-IND) has been authorized to designate Virtual Digital Asset Service Providers (VDSAPs) as Reporting Entities under the Prevention of Money Laundering Act, 2002 (PMLA) for specific oversight purposes such as anti-money laundering (AML) and counter-terrorism financing (CFT). Law Enforcement Agencies (LEAs) are also responsible for addressing illegal actions in accordance with existing legal regulations.
Current laws give law enforcement agencies, including regulators like the Reserve Bank of India, the authority to take action against illegal conduct. Recent orders from the Directorate General of GST Intelligence to pay $86 million in in default taxes brought attention to continuing regulatory measures at Binance.
Despite the lack of regulations, the Indian government is actively involved in global discussions around cryptocurrencies. A comprehensive policy approach was facilitated by the G20 leadership of India through the adoption of a roadmap on crypto assets. Before deciding on regulations, the government assesses risks specific to the country. The government is required to provide a discussion paper outlining its stance by September 2024. The e-rupee, India’s central bank’s digital currency, is gaining acceptance, and big payment businesses like AmazonPay and GooglePay are showing a lot of interest in it.
Indian investors and cryptocurrency-related organizations need to be aware of any changes to the regulatory landscape and negotiate the current frameworks.
