India is on the verge of integrating the cryptocurrency sector into its financial landscape, with a keen focus on establishing a robust legal framework to mitigate potential financial risks for its citizens. Pankaj Chaudhary, the Minister of State for Finance, recently informed the Rajya Sabha (Upper House) that the New Delhi Leaders’ Declaration has embraced the cryptocurrency roadmap finalized by the G20 nations for adoption.
Chaudhary stated in a written statement, “All jurisdictions, including India, are expected to evaluate the country-specific characteristics and risks to reach an appropriate consideration of any necessary measures on crypto assets.”
The G20 cryptocurrency roadmap, finalized under India’s presidency this year, provides flexibility for emerging markets and developing economies (EMDEs) to customize the listed regulations to better align with their economic and legal perspectives.
India, ranked at the forefront of grassroots crypto adoption in the Chainalysis 2023 Global Crypto Adoption Index, recognizes the need for a comprehensive regulatory framework. R Venkatesh, SVP and Head of Public Policy at CoinSwitch, expressed, “We welcome the Finance Ministry’s response in the Parliament today on measures for effective regulation of crypto-assets.”
As of now, no specific deadline has been imposed on G20 nations for adopting the crypto roadmap. For India, the implementation of these finalized cryptocurrency regulations may still be at least 18 months away, according to Jayant Sinha, Chair of the Standing Committee on Finance in India’s Parliament.
Sinha, a member of the ruling Bharatiya Janata Party (BJP), disclosed this timeline during the India Blockchain Week in Bengaluru, emphasizing the evolving nature of regulatory balance over the next 12 to 18 months. He highlighted the responsibility of regulators and policymakers to strike a balance between encouraging innovation and ensuring safety in the crypto space.
Additionally, Chaudhary informed the Rajya Sabha that, currently, the government is not registering foreign crypto exchanges, denying them legal permission to operate in the country. This cautious approach reflects India’s commitment to thoroughly assess the impact of crypto assets on its financial systems before implementing regulatory measures.
