India has no plan yet to regulate sale and purchase of crypto: MoS Finance
The crypto sector in India has been eagerly awaiting a comprehensive regulatory framework to set up and expand their businesses safely and legally. However, the Indian government is not yet ready to follow the likes of the EU and the UAE by coming out with a detailed national crypto rulebook. In a written reply to the Lok Sabha, Finance Minister Pankaj Chaudhary stated that there is no proposal to introduce legislation to regulate the sale and purchase of virtual assets in the near future.
Chaudhary was answering questions about the government’s stance on the crypto sector, directed to him by GM Harish Balayogi, Member of Parliament. Balayogi wanted to know if the government has any proposal to introduce more regulations for the crypto sector.
Responding to the queries, Chaudhary said, “At present, there is no proposal to bring in legislation to regulate the sale and purchase of virtual digital assets in the country. However, for specific supervisory purposes such as Anti Money Laundering (AML) and Countering the Financing of Terrorism (CFT), the Financial Intelligence Unit India (FIU-IND) is empowered to designate Virtual Digital Asset Service Providers (VDSAPs) as Reporting Entities (RE) under the Prevention of Money Laundering Act, 2002 (PMLA).”
Balayogi also wanted to know if the government has done any research on the current status of VDAs in circulation and if the government has an exact number of companies currently operating in India’s crypto ecosystem.
Chaudhary said that the government does not collect data on crypto work as the sector is “unregulated” in the country.
India’s Future Crypto Regulation Plans: What to Expect
India has been pushing for the creation of a crypto law that would work uniformly at the global level. During its G20 presidency last year, India worked with the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to create a roadmap for crypto legalization for all members of the G20 group.
According to Chaudhary, all G20 countries are currently in a phase where they are expected to analyze the pros and cons that crypto can bring. Later, as a next step, G20 countries will work with global standardization bodies to appropriately consider all necessary measures for crypto assets.
Speaking to Gadgets360, Sharat Chandra, the founder of blockchain-focused EmpowerEdge Ventures, said: “This is a clear indication that the government will not change its stance on crypto regulations until there is a global consensus on regulations.”
As India continues to explore the impact of cryptocurrencies on the financial system, the Reserve Bank of India is considering including UPI apps like Google Pay, PhonePe and Amazon Pay in the advanced testing of the eRupee CBDC.
