In response to changing the global approach, India is re -evalting its cryptocurrency attitude.
Economic Affairs Secretary Ajay Seth told Roots India’s review consider the changing positions of several courts about cryptocurrency use and acceptance. This revaluation has originally delayed the release of a cryptocurrency discussion letter prescribed for September 2024.
“One or more courts have changed their stance towards cryptocurrency in terms of use, their acceptance, where they look at the importance of crypto assets. In that straight, we are once again taking a look at the discussion letter, ”said Seth.
The review comes on the heels of President Donald Trump’s Executive Order, which Work Treasury and other federal agencies with review of US rules affecting the digital asset field.
The order clearly referred to bitcoin or other specific cryptocurrency, saying that the work group would “evaluate the possible construction and maintenance of the national digital asset stockpile.”
India’s tough crypto attitude remains
Despite India’s strict regulatory environment, which includes 1% TD on 30% capital gains and transactions, Cryptocurrency investment has increased significantly among Indian investors.
The country maintained tight monitoring, with the financial intelligence unit taking action against non-transportation exchange. In December 2023, FIU issued notices on nine offshore cryptocurrency platforms, while Binance imposed a fine of $ 2.25 million to resume Indian operations in June 2024.
The Reserve Bank of India has expressed constant concern about private digital currencies, reiterating its cautious stance in its December 2024 Financial Stability Report. However, India’s market regulator has suggested a multi-regular approach to the cryptocurrency oversight. This shows a potential openness for private virtual assets among some officials.
The current tax structure remains a barrier for crypto traders. Currently there are no provisions for losses and compulsory deductions on more than ₹ 50,000 transactions per financial year. The regulatory structure includes several bodies, including the Reserve Bank of India (RBI), the Ministry of Finance and SEBI.
While India continues to ban cryptocurrency as a legal tender, the policy review suggests possible adjustment for the regulatory framework.
India’s complex history with Crypto
From 2013 to 2017, RBI issued a warning about the risks of cryptocurrency, but there were no formal rules in the place.
By 2017, as Digital Asset Class gained popularity, RBI’s concerns about money laundering and investor protection were maximum investigated.
The following year, RBI imposed banking ban on crypto exchanges, which cut access to the banking system for the sector. It severely affects India’s Crypto market, until the Supreme Court’s landmark verdict in 2020, which Declared RBI ban unconstitutional. It breathed a new life in the industry.
However, the Government of India has since maintained a cautious stance. While this blockchain technology and a central bank continue to detect the introduction of Digital Currency (CBDC), the fate of private cryptocurrency is uncertain. As the discussion about regulation intensifies, Indian crypto businesses face challenges in banking access, legal clarity and investor protection.
Despite these obstacles, India is one of the largest crypto markets in the world. With increasing interest in its technique-lover population and decentralized finance (DEFI), the result of India’s Crypto visit will shape the global regulatory approach in the coming years.
