India Moves Ahead One Step Closer In Crypto Adoption

Stakeholders, including Central Bank of India, public and private financial institutions, IMF as well as WorldBank, have all been taken on board in India for consideration consultation papers regarding cryptocurrencies.

A few days ago, Ajay Seth, who is the Secretary of Economic Affairs of India had suggested that crypto consultation paper has been handed over to the Government. On 30th May, 2022, however, Seth suggested that the Government has considered the consultation paper and is now ready to invite discussion and debate on it.

India Nearing Crypto Adoption

While talking to the press, Seth revealed that Government officials have thoroughly looked into the consultation paper and therefore further action is anticipated. He further suggested that the relevant stakeholders i.e. Central Bank of India, public and private financial institutions, IMF as well as WorldBank, were invited to give comments.

He claimed that the comments were received and duly considered and so the main consultation process has been achieved successfully.

According to Seth, it is now up to the Government officials when they will be finalizing and approving the consultation paper for implementation. He is expecting that the approval will not by delayed unnecessarily and will come very soon.

Concerns With Regard To Crypto Regulations

He also talked about a few concerns with regard to the integration of digital assets within Indian economy. He said that the Government does not want to rush things because crypto integration requires a broad spectrum. Without this broad spectrum, it would be quite difficult to intermingle several economies.

He stressed that in India the issue of cryptocurrencies as well as central bank regulated digital currency has come up for consideration several times in the past. He pointed out that countries such as the US is also looking at digital currency integration. However, India is currently weighing on the pattern to be followed by top economies of the world with regard to crypto.

The Economic Affairs’ Secretary advised that there has to be uniform policy regarding crypto regulation worldwide which calls for global consensus. Seth emphasized that regulations are must for crypto as they are mandatory for any other asset.

He said that the world needs to also collectively address the issue of crypto whether it should be treated as “security” or otherwise. He argued that it shouldn’t be the case that in one country it is regarded as ‘security’ and as ‘currency’ in another. He appealed to all the countries that they should sit together and arrive at a consensus on this point as well.

India’s Narrative

As regards Indian regulations in the pretext of crypto, he suggested that for regulation as well, India will be looking at other countries. “We are awaiting top economies like the US to promulgate crypto laws and then we will decide how India want to proceed.”