India Pivots On Crypto After Reviewing G20 Proposal, Secretary Of Economic Affairs Says

Amid the anticipation of the upcoming Benzinga's Future of Digital Assets conference on Nov. 14, India is poised to evaluate and determine its stance on cryptocurrencies after assessing the consensus of global leaders on an agreeable crypto regulatory framework.

After the G20, or Group of Twenty, discussions took place, India Secretary of Economic Affairs Ajay Seth said "India's position will be decided in the coming months."

Since the G20 has established "the framework for assessing risk," India will carefully review "what globally the leaders have agreed to" before finalizing an appropriate policy direction for the country, Seth explained.

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Historically, India's crypto trajectory has been watched closely, especially given its initial flourishing crypto environment, which later faced challenges such as stringent taxation, crypto market downturns, informal prohibitions, stringent anti-money laundering regulations, and actions against leading cryptocurrency exchanges.

India prioritized framing international crypto regulations during its G20 presidency, resulting in a collaborative "synthesis paper" from the International Monetary Fund (IMF) and the Financial Stability Board (FSB).

Sunday's insights from Seth hint at a potential change in direction, suggesting India might be inclined to create its unique crypto legislation, marking a notable development since the nation paused its efforts to legislate crypto via a bill in early 2022.

Despite the central bank's preference for a crypto prohibition, the government hasn't signaled agreement.

Presently, a total ban seems improbable, echoing the synthesis paper's sentiment against a comprehensive prohibition.

Leading up to the recent G20 Leaders' Summit, India disclosed its official crypto stance through a presidency note, outlining its crypto recommendations before finalizing the synthesis paper.

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