India’s consultation paper on cryptocurrency is fairly ready: Economic Affairs Secretary

The Economic Affairs Secretary of India, Ajay Seth’s revealed on May 30 on the curtain raiser event of Iconic Week as part of Azadi Ka Amrit Mahotsav to be conducted by the Finance Ministry, CNBC reported. Seth said that the government’s consultation paper on cryptocurrency is almost ready. The government has worked extensively on the process and sought viewpoints of both domestic institutional stakeholders and international organizations including the World Bank, and the International Monetary Fund (IMF). Referring to the ongoing work, he assured that the government would soon be able to finalize the consultation paper on cryptocurrency.

Seth revealed some information about the progress on government’s cryptocurrency consultation paper which will form basis of country’s crypto framework:

• He said that India has also been reiterating the need for a broad global framework and consensus, just like all other countries, the IMF, the US Treasury, with regards to digital assets.
• He said that all the economies have to be together for work and the Indian government is looking at a global paradigm on digital assets.
• Seth said that India will take into consideration the regulations enforced in other countries before establishing its own crypto policy. “We are also beginning our work for some sort of global regulations as well about what role can India play”, Seth said.

In April, the Finance Ministry drafted a consultation paper on cryptocurrency and was discussing a framework for cryptocurrency with various stakeholders including Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), International Monetary Fund (IMF) and World Bank. The consultation paper deals with cryptocurrency, associated risks and its treatment as an asset class.

Tobias Adrian

, Financial Counselor and Director of the International Monetary Fund (IMF)’s

Monetary and Capital Markets Department

also confirmed later in April that crypto regulation is definitely high on the agenda for India and both are working together to come up with global standards for crypto asset regulations.

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