India is reevaluating its cryptocurrency stance in response to changing global attitudes.

Economic Affairs Secretary Ajay Seth told Reuters that India’s review considers the changing positions of multiple jurisdictions regarding cryptocurrency usage and acceptance. This reassessment has delayed the release of a cryptocurrency discussion paper originally scheduled for September 2024.

“More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again,” Seth said.

The review comes on the heels of President Donald Trump’s executive order, which tasks the Treasury and other federal agencies with reviewing U.S. regulations affecting the digital asset sector.

The order stopped short of explicitly mentioning Bitcoin or other specific cryptocurrencies, saying only that the working group “shall evaluate the potential creation and maintenance of a national digital asset stockpile.”

India’s stringent crypto stance remains

Despite India’s strict regulatory environment, which includes a 30% capital gains tax and 1% TDS on transactions, cryptocurrency investment has grown substantially among Indian investors.

The country maintains tight oversight, with the Financial Intelligence Unit taking action against non-compliant exchanges. In December 2023, the FIU issued notices to nine offshore cryptocurrency platforms, while Binance paid a $2.25 million fine in June 2024 to resume Indian operations.

The Reserve Bank of India has consistently expressed concerns about private digital currencies, reiterating its cautious stance in its December 2024 Financial Stability Report. However, India’s market regulator has suggested a multi-regulator approach to cryp

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Author: Vignesh Karunanidhi