India to Introduce Measures Around Crypto This Year

The Indian government is planning to introduce measures around crypto in 2023. 

India to Introduce Measures Around Crypto This Year

According to the country's economic affairs secretary Ajay Seth India's finance minister express that cryptocurrency regulation will be discussed in her upcoming G20 meeting of finance ministers and central bank governors. 

Ajay Seth said that will introduce measures around crypto in a press conference in Mumbai. 

The technology of crypto assets like blockchain and others can be used but its use in the financial sector has several risks, he was quoted by local media saying.

"In the course of this year, measures around crypto would be brought out"

The Economic Affairs added that in India the body is talking about using crypto as a currency the risk is with using it as a token.

The Indian government has been working on crypto regulation for a few years a draft crypto will be unveiled in 2019,

Indian finance Minister Nirmala Sitharaman stated on Friday in a budget interview with network 18 group that she will be looking at developing a global standard operating procedure for regulating crypto assets in the upcoming G20 meeting under India's presidency the first meeting of the G20 finance ministers and central bank governors is scheduled to be held on Feb 24 to 25 in Bengaluru.

According to Nirmala Sitharaman:

"We will be looking at global SOP to be available and agreed upon for regulating crypto assets while recognizing the central bank as the authority for issuing cryptocurrencies."

also, she said, The rest of the assets created outside that are using very useful financial technologies even those that have to be discussed because regulations cannot be done by one country singularly it has to be a collective action because technology doesn't brook any borders. 

Sitharaman did not mention crypto assets in Indian Budget 2023, this year's finance bill includes a few new tax penalties relating to crypto tax deducted source (TDS) Economic survey highlighted the need for a common approach to regulating the crypto ecosystem. 

India's central bank Reserve Bank of India (RBI) has recommended banning cryptocurrencies like Bitcoin and Ethereum because crypto could undermine the authority of the central bank.

According to Shaktikanta Das RBI governor: 

"if crypto is allowed in india RBI will lose control over monitoring transactions crypto masquerading as a financial asset is a completely misplaced argument."

Shaktikanta Das also warned that crypto lead to a financial crisis if it is not banned in India. 

Related: Indian Economic Survey Expresses Worries Over Cryptocurrency Adoption