India To Regulate Cryptos Like Bitcoin And Dogecoin Only After Global Consensus: Report

A shadow of fear and uncertainty over India's cryptocurrency ecosystem is expected to end only after a global consensus emerges on regulating such assets, a Bloomberg report on Friday (New Delhi time) indicated.

A source at the Indian Finance Ministry told Bloomberg that the government is not expected to bring a law anytime soon to either regulate or tighten provisions for the use of cryptocurrency in India. 

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This came months after the Indian Finance Minister Nirmala Sitharaman, in her Union Budget 2022-23 speech, announced that under the new scheme, all virtual assets such as cryptocurrencies, NFTs, that are sold at a profit would be taxed at the rate of 30 percent. The new rules came into force on Friday. 

In his address to the World Economic Forum in January, Indian Prime Minister Narendra Modi also said a global uniform approach to cryptocurrencies is needed, and steps by one nation will not be sufficient. 

Despite the fear of a blanket ban and higher tax slabs, assets like Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD have seen a stark rise in popularity in the country.

India's cryptocurrency market saw a staggering growth of 641% between July 2020 and June 2021, making it one of the world's fastest-growing, according to a report from the cryptocurrency research firm Chainalysis.