India to Finalize Stance on Legality of Cryptocurrency by Q1 2023
The Indian government is reportedly planning to finalize its stance on the legality of cryptocurrency by the first quarter of next year to become financial action task force (FATF) compliant.
Government of India official said: "We will finalize our responses by February-March 2023" we have to respond to the FATF by May.
Indian government official was quoted said: “The Revenue Department has already sent their views and the Department of Economic Affairs has now been tasked to prepare a detailed response on India’s stance on the legality of cryptocurrency,”
The FATF mutual evaluations are "in-depth country reports analyzing the implementation and effectiveness of measures to combat money laundering and terrorist financing"
The government official further told the publication:
"One of the questions that we have to respond is on the legality of cryptocurrencies, since we have already started to tax them. We will finalize our responses by February-March 2023. We have to respond to the FATF by May."
Furthermore, a Financial Stability Board (FSB) report is expected in October it will help the Indian government decide whether to ban cryptocurrency transactions or provide a legal framework for dealing with crypto trade in India,
Indian government saying:
"We are awaiting the (FSB) report which will be important from the crypto legislation perspective. We are also hoping it addresses how to deal with wallet transfers (of crypto)."
The legislation part is still being worked on when we had taxed it we had made it clear that legislation is still a work in progress. this report would help address the legislation aspect to a considerable extent.
India is right now not FATF compliant on crypto assets since the global money laundering and terrorist financing watchdog required countries to have a clear stance on the legality of crypto assets to be compliant.
Indian Finance Minister Nirmala Sitharaman recently meeting of the Financial Stability and Development Council (FSDC) where issues relating to crypto assets were discussed.
In another meeting with IMF, Kristalina Georgieva where Nirmala Sitharaman urged the IMF to take a lead role in regulating crypto assets.