India is reviewing its stance on cryptocurrencies due to shifting attitudes toward the virtual asset in other countries, a senior government official told Reuters on Sunday.
The review, which follows crypto-friendly policy announcements by US President Donald Trump, could further delay publication of a discussion paper on cryptocurrencies that was due for release in September 2024.
“More than one or two jurisdictions have changed their stance toward cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again,” India’s Economic Affairs Secretary Ajay Seth said in an interview.
Seth said that because such assets “don’t believe in borders,” India’s stance cannot be unilateral.
He did not specifically mention the United States, where Trump last week ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations and exploring the creation of a national cryptocurrency stockpile, making good on his promise to overhaul US crypto policy.
Indians have poured money into cryptocurrencies in recent years despite the country’s tough regulatory stance and steep trading taxes.
India’s Financial Intelligence Unit (FIU) issued show-cause notices to nine offshore cryptocurrency exchanges in December 2023 for non-compliance with local rules.
Binance, the world’s biggest crypto exchange, was hit with a fine of 188.2 million rupees ($2.25 million) in June 2024, a month after it registered with the FIU in an effort to resume operations in the country.
Last year, India’s market watchdog recommended that several regulators oversee trade in cryptocurrencies, in a sign that at least some authorities in the country are open to allowing the use of private virtual assets.
That position stood in contrast to statements by the nation’s central bank, which has maintained that private digital currencies represent a macroeconomic risk.