India’s economic affairs secretary, Ajay Seth, has provided an update on what the Indian government is doing in terms of finalizing cryptocurrency legislation. He expects crypto regulation to be discussed at the upcoming G20 meeting for finance ministers and central bank governors.
Economic Affairs Secretary Discusses Cryptocurrency Regulation in India
India’s economic affairs secretary, Ajay Seth, reportedly shared the progress of cryptocurrency legislation in India in an interview with PTI, published Friday.
A cryptocurrency bill was listed to be considered in the Winter session of parliament but it was not taken up. Many people in the crypto industry are now anxiously awaiting to see when the Indian government will introduce a crypto bill.
Responding to a question about whether the government would introduce crypto regulation in the Budget session of parliament, Economic Affairs Secretary Seth stated:
Regulation or ban, whatever it is, appropriate policy response to crypto assets is in the making.
Regarding when crypto legislation will be introduced, he replied: “How long? I am unable to put a finger on. I don’t see this happening in the Budget session for sure. The work is in progress.”
The economic affairs secretary further revealed what the Indian government is currently doing in terms of finalizing cryptocurrency legislation.
“At this point of time, we are interacting with various stakeholders, especially the institutional stakeholders and not crypto stakeholders,” he detailed, adding:
Stakeholders which have the mandate on monetary policy, fiscal policy, financial stability, and development economics are in touch.
Global Crypto Policy and G20 Meetings
The Indian government has previously said that the country’s crypto legislation will take a balanced approach. Finance Secretary T. V. Somanathan said last week the government’s approach is to consult widely and also to look at what’s happening internationally in terms of crypto regulation.
Economic Affairs Secretary Seth told PTI that the Indian crypto policy will not be finalized until after discussion at G20 meetings. He emphasized: “Whatever regulations are brought in, unless there is a global consensus they won’t succeed. It may succeed 80%-90% but it will not be a comprehensive solution.”
The economic affairs secretary opined:
I do expect that in the current year the discussion would be starting in the G20 forum on appropriate global response to crypto assets.
The first G20 meeting of finance ministers and central bank governors is scheduled to begin on Feb. 17 under the presidency of Indonesia. The second meeting for the finance chiefs will take place in April and the third in July.
Seth also confirmed that India’s central bank digital currency (CBDC), which will be issued by the Reserve Bank of India (RBI), will be a reality in 2022-23 as announced by the finance minister during her Budget speech.
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