Indian Government is to Submit a Crypto Consultation Document by October
In an effort to provide more regulatory clarity for the asset class, the Indian government is creating a consultation document that will address some of the most important concerns related to cryptocurrencies. The Secretary of the Department of Economic Affairs is leading a team that will likely submit a consultation document in September or October, according to a CNBCTV18 story on Wednesday.
- The Indian government is requesting input from stakeholders as it works to balance innovation with regulatory control by strengthening its domestic cryptocurrency policy.
- Indian Prime Minister Narendra Modi demanded a global framework for regulating cryptocurrencies, AI, and other emerging technologies during the G20 Summit last year.
India’s Regulatory Crackdown: Offshore Crypto Exchanges Face Bans and Scrutiny
It comes after India’s central bank forbade financial institutions from dealing with the asset class in 2018, adding to the nation’s troubled history with cryptocurrencies. Two years later, in spite of continued regulatory concerns, the Supreme Court reversed the order, allowing cryptocurrency trade to continue. The RBI has previously called for a ban on digital assets pegged to fiat currencies, like the US dollar, or commodities, like gold. These concerns include the macroeconomic risk that privately issued cryptocurrency poses, particularly in relation to stablecoins.
- The government has taken strong action against non-compliant offshore cryptocurrency exchanges, and in December, it banned nine key platforms. This suggested report comes after such action.
- Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex were among those accused of not adhering to India’s anti-money laundering regulations.
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