India’s Ministry of Economic Affairs is finalizing a consultation paper on cryptocurrencies, which will then be submitted to the federal government. The implementation of the document could bring the country of 14 billion people closer to an international regulatory consensus on digital assets.
Economic Affairs Minister Ajay Seth at an event hosted by the Ministry of Labour and Employment on Monday 30 May disclose His ministry is finalizing work on a consultation paper that will define the state’s stance on cryptocurrencies.
The document was prepared in collaboration with industry stakeholders, the International Monetary Fund (IMF) and the World Bank. Seth noted that the document would reinforce India’s commitment to “some kind of global regulation”:
“Digital assets, no matter how we want to deal with them, must have a broad framework on which all economies must come together.”
Responding to questions about a possible outright ban, the official acknowledged that no state-level ban would work in isolation:
“Whatever we do, even if we go to extremes, those countries that choose to ban, they cannot succeed unless there is a global consensus.”
India has been showing a rather aggressive stance when it comes to cryptocurrencies in recent years. In 2017, the Reserve Bank of India (RBI) and the Ministry of Finance compared digital currencies Ponzi scheme And commercial banks and lenders are prohibited from doing any business with them.
In 2022, long after ban is officially lifted, RBI warns of threat of ‘dollarisation’ Composition of cryptocurrencieswhile in his recent virtual speech at the World Economic Forum in Davos, Prime Minister Narendra Modi called cryptocurrencies global challenge This requires “collective and simultaneous action” by all national and international agencies.