The Department of Economic Affairs of India has completed a consultation paper about crypto currencies. It will then be given to the federal government. This document could help India, a country with 14 billion inhabitants, to reach the international regulatory consensus regarding digital assets.
Ajay Seth, Economic Affairs Secretary, revealed Monday, May 30, at an event hosted by Ministry of Labour and Employment that his department was finishing work on the consultation paper which would establish the nation’s position on crypto.
This document was created in collaboration with key industry stakeholders, including the International Monetary Fund (IMF), and the World Bank. Seth stated that the paper would reinforce India’s commitment towards “some kind of global regulation”.
“Digital assets, however we choose to deal with them, require a wide framework that all economies must be within.”
The official answered the question regarding a possible ban outright, but acknowledged that any national-level ban wouldn’t work alone.
“No matter what we do, even if it’s the extreme, the countries who have chosen to ban, they won’t succeed without a global consensus.”
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India has taken a militant stance in recent years when it comes crypto. The Reserve Bank of India (RBI), and the Ministry of Finance, compared digital currencies to Ponzi schemes in 2017 and banned any operation with them for commercial banks or lenders.
Even though the ban was formally lifted in 2022, the RBI warned of the danger of crypto “dollarization”. In a virtual speech to the World Economic Forum in Davos on February 2, Narendra Modi, prime minister of India, described cryptocurrency as a global problem that requires a “collective, synchronized action” by all national and international organizations.