India’s Government Says a Crypto Consultation Document is Ready

India’s Government Says a Crypto Consultation Document is Ready

May 30, 2022 Off By Roland G

A statement from an official source suggests that some clear progress has been made, despite the fact that the process of regulating the usage of cryptocurrencies in India has been ongoing for the past year.

Taj Mahal

According to Reuters, India’s economic affairs secretary, Ajay Seth, said that the country’s inflation should begin to fall in the coming months and that the government is ready with its consultation paper on cryptocurrencies.

In addition, Seth remarked that a global accord on cryptocurrencies was required and that India would study other countries’ legislation before deciding how to regulate.

Although the government committed in this year’s annual budget to levying a 30% tax on profits generated by cryptocurrency investments, the country has yet to give the measure the status of legally enforceable law.

Last week, India’s central bank, the Reserve Bank of India (RBI), issued a warning to its citizens against investing in the crypto market, following the Terra (LUNA) and the stablecoin TerraUSD (UST) saga.

Following this, Shaktikanta Das, the Governor of the Reserve Bank of India, highlighted the recent drop in the value of the cryptocurrency market as well as the necessity for a legal framework surrounding digital assets.

Officials from the Ministry of Finance have already discussed cryptocurrency laws with the International Monetary Fund (IMF) and the World Bank.

India’s Finance Minister, Nirmala Sitharaman, stated in April that the choice of whether or not to regulate cryptocurrencies will not be taken lightly as the government is taking its time to make a decision.