The Indian government recently provided insight into the progress being made regarding cryptocurrency regulation in the country, providing a glimpse into the relevant framework and considerations. This important update was shared during a congressional session where questions about cryptocurrency regulation were addressed.
Indian Government’s Focus on Cryptocurrency Policy Framework
During a parliamentary session on Monday, the Indian government addressed questions related to the state of cryptocurrency regulation in the country. The cryptocurrency regulation debate in India has been ongoing since 2019 when the draft bill was first introduced, sparking debate and deliberation over its feasibility and potential impact.
Rajeev Shukla MP questioned the Finance Minister in the Rajya Sabha about his government’s intention to follow the New Delhi Leader’s Declaration adopted by him. G20 countries working towards effective cryptocurrency asset regulation.
IMF-FSB Comprehensive Report: Guidelines for Cryptocurrency Policy
Responding to a question on Tuesday, Finance Minister Pankaj Chaudhary emphasized the importance of the International Monetary Fund (IMF). (IMF) – Financial Stability Board (FSB) comprehensive report on regulatory strategy formulation. Recognizing this comprehensive thesis, the New Delhi Leader’s Declaration welcomed the Roadmap. Support a coordinated and comprehensive policy and regulatory framework for crypto assets..
Chaudhary emphasized that the IMF-FSB comprehensive report provides valuable insights not only to G20 countries but also non-G20 jurisdictions, providing a clear trajectory for establishing strong policies on cryptocurrency assets.
Chaudhary highlighted the higher risks that emerging markets and developing economies (EMDEs) face from cryptocurrency assets, while the composite paper notes that these economies take into account their specific characteristics, such as economic size, regulatory priorities, institutional capacity and global financial integration. He emphasized that this provides flexibility to implement customized measures. .
Risk and Characteristics Assessment: India’s Approach
In conclusion, Minister Chaudhary outlined the expectation that all jurisdictions, including India, should assess country-specific risks and characteristics to devise appropriate measures related to cryptocurrency assets. This approach is consistent with a nuanced understanding of diverse economic and regulatory environments and highlights the importance of tailored actions in solving cryptocurrency-related challenges.
This latest government speech adds to a series of questions covering India’s position on cryptocurrency regulation and engagement with emerging technologies, reflecting an important step towards formulating a comprehensive cryptocurrency policy in India.