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India Set to Make Historic Decision on Crypto After G20 Summit

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By Augustine Mbam - - 5 Mins Read
A shattered piece of bitcoin resting on the Indian flag
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India is now one of the new countries with an increasing interest in the crypto industry. The interest here is not that of the citizens but the government, who are keen on developing a new crypto regulatory framework for crypto activities in their country.

 

The country's Prime Minister and other top-ranking officials have spoken many times about the crypto industry, and their emphasis has always been on the regulatory side of the innovative industry.

 

Recently, the Asian country hosted the Group of 20 (G20) summit, where a lot was discussed. One of the most critical points of this summit was the point raised by the Indian government regarding the crypto regulatory framework. 

Why is India Keen on a Regulatory Framework? 

Over the past months, one of the major talking points for the Indian government is crypto. Amidst their plans to rename the country to Bharat, the government is also trying to establish how cryptocurrencies will operate. However, the country seems to be taking a back seat.

 

According to officials representing the Indian government, they want to get a hint of other countries' positions on crypto regulation before making their own decisions. While there's no current crypto ban in India besides regular regulatory interventions, the Asian country wants clarity using a similar framework and strategies for G20 crypto regulation. 

Several pieces of cryptocurrencies
Cryptocurrency is offered as a salary by companies trying to draw young talents | Unsplash

According to India Secretary of Economic Affairs Ajay Seth, the country is not ready to decide immediately regarding its crypto regulation. Instead, the government plans to make such decisions in the coming months. "India's position will be decided in the coming months," Ajay Seth said.

 

The G20 crypto regulation has already established a kind of framework for assessing risks in the crypto industry. So, India plans to take their time to analyze these frameworks and make their own independent decisions in the coming months. The country wants to review what global leaders think of the crypto industry before making decisions. 

What Next For India's Crypto Industry 

Things went the right way during the early days of the crypto wave that first penetrated the country, with many developing considerable interests in the industry. However, things went the wrong way as many problems emerged within the crypto landscape.

 

Issues like massive lawsuits against crypto exchanges, stringent taxation from the government, anti-money laundering regulations, crypto market downturns, and informal prohibitions are making the industry in the country a bit unattractive. Hence, there's a need for a specified and explicit crypto regulation for India. 

 

Initially, India wanted to create its crypto regulation concerning the G20. Apparently, the country wanted a massive collaboration between them and the International Monetary Fund (IMF) and the Financial Stability Board (FSB).

 

However, some new insights show the country might be taking a new direction in its quest to create a serene crypto environment. On the other hand, the Central Bank of India is putting pressure on the government to carry out a crypto ban in India operation. However, the government hasn't shown any sign of agreeing with this plan.

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