Indian govt to release crypto policy discussion paper next month

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India is likely to release a discussion paper next month to explore policy options for crypto assets, reported The Economic Times.

 

This comes at a time when digital currencies are seeing growing acceptance worldwide, especially after US President Donald Trump openly supported them.

 

According to the report, the paper will take inputs from a report created by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). It will also seek opinions on how different countries are regulating crypto.

 

“The discussion paper on crypto assets is being given finishing touches,” an official told The Economic Times. The paper could be posted for public comments as early as next month. 

 

India has taken a cautious approach so far. Crypto exchanges operating in the country must register with the Financial Intelligence Unit.

 

Earlier, the Reserve Bank of India (RBI) raised concerns about the possible misuse of crypto for illegal activities like money laundering and terror financing. Instead, it is working on its own Central Bank Digital Currency (CBDC) as a safer option.

 

The government will finalise its position only after detailed discussions with all stakeholders and careful study of global regulations.

 

According to the report, Bharti Group chairman Sunil Mittal on Thursday also spoke in favour of creating a clear policy for crypto.

 

“Look at the case with crypto now. Crypto, in the last six to eight, 10 weeks has started to move at a pace which has never been seen before, when the Trump administration has been supporting cryptocurrencies,” Mittal said. He added that India needs to take action.

 

“So far, the position was no... crypto will not be allowed. We will probably try our own digital currency. But I think with the US moving so fast, you need to have strong regulations, policies, look at what’s going on in the world, and then look at and see what impact it has,” he said, as quoted by The Economic Times. 

 

US changes stance on crypto 

The US, which was earlier against crypto under the Biden administration, is now working on pro-crypto laws. It has also created a strategic bitcoin reserve.

 

In a surprising move, the Trump administration also pardoned Ross Ulbricht, the founder of Silk Road, an online black market that helped in the early use of bitcoin.

 

US Vice President JD Vance recently encouraged the crypto industry to keep pushing Congress to pass new laws that support crypto. He made these comments at a bitcoin conference in Las Vegas on Wednesday.

 

At the same event, Pakistan announced its first government-backed strategic bitcoin reserve and welcomed investment in its crypto markets.

 

(With inputs from Agencies)