India is reassessing its cryptocurrency regulations as global policies evolve, with officials revisiting a discussion paper that could reshape the country’s approach to digital assets.
India May Soften Crypto Stance as US Embraces Bitcoin
India is reexamining its stance on cryptocurrency regulations as international perspectives on digital assets shift, Reuters reported Sunday, citing Economic Affairs Secretary Ajay Seth. The official stated:
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.
His comments suggest that India is reevaluating its regulatory framework in response to evolving global policies on cryptocurrencies.
Shifts in U.S. crypto policy have influenced this reassessment, particularly following an executive order from President Donald Trump that signaled support for digital assets. Trump’s stance marks a contrast to the Biden administration’s approach. Additionally, regulatory changes in the U.S. may indicate a more favorable environment for cryptocurrencies. The departure of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, known for his strict oversight, along with the appointments of a crypto czar and a pro-bitcoin Treasury Secretary, suggests the possibility of clearer and more lenient regulations. These developments have been met with optimism within the crypto industry.
Beyond regulatory changes, discussions in the U.S. have emerged about recognizing bitcoin as a strategic reserve asset. Several states have proposed legislation to classify bitcoin in this way, potentially bolstering its role in financial security. Other nations are also considering similar policies, indicating a broader global trend toward integrating bitcoin into national economic frameworks.
Uncertainty continues to surround India’s regulatory approach to digital assets. The government had previously planned to release a discussion paper on cryptocurrencies in September 2024, but the reassessment process has cast doubt on that timeline. The latest national budget did not address cryptocurrencies, despite industry calls for tax reforms. Currently, India imposes a 30% tax on gains from crypto transactions and a 1% tax deducted at source (TDS), a policy many argue hampers innovation and market activity.
Source: Bitcoin
