The Indian government was never a big supporter of cryptocurrency and especially the implementation of a 30% tax on the capital gain just proves the same point. But now we are seeing some efforts being put by the government into understanding the crypto market. A consultation paper is produced in collaboration with the International Monetary Fund (IMF) and the World Bank is nearing completion at India's Department of Economic Affairs. The consultation paper will include data from many stakeholders and institutions. This list will also include the world bank and International Monetary Fund.
What's the update on the Crypto Consultation paper
The report will outline India's position on cryptocurrencies and, according to Economic Affairs Secretary Ajay Seth, this would boost the country's regulatory push. On Monday he said that the constitutional paper is almost ready and
Whatever method we use to deal with digital assets, there must be a broad foundation on which all economies must be united.
In that situation, India is said to be unwilling to implement an official ban on cryptocurrencies unless there is a global consensus in support of it. Rather, the presented document might be seen as a summary of India's vision of a future international agreement and where India fits into that picture.
Along with that he also mentioned that work has started on the global regulations and these global regulations can't be successful around the countries that have prohibited a broad spectrum of prohibition is needed. And to deal with any kind of digital asset all economies have to be together on a broad framework.
All the challenges that will arise in the "Amrit ka Kal"
will be overcome. And even after all the strong global headwind that is impacting all these global economy is still leading India to better growth
When it comes to cryptocurrency, India has taken a very aggressive stance in recent years. The Reserve Bank of India (RBI) and the Ministry of Finance linked digital currencies to Ponzi schemes in 2017 and forbade commercial banks and lenders from dealing with them.
The RBI warned about the threat of "dollarization"
posed by cryptocurrency in 2022, long after the ban had been formally lifted; and Indian Prime Minister Narendra Modi called cryptocurrency a global challenge that requires "collective and synchronized action" from all national and international bodies in a recent virtual speech at the World Economic Forum.
Seeing this does give hope to people to get better news about the acceptance of cryptocurrency in India even though the past attitude seen was in a negative way.