The Indian government is taking steps to shore up its domestic crypto policy as it attempts to juggle innovation with regulatory oversight. According to a CNBCTV18 report, the Secretary of the Department of Economic Affairs is heading up a panel that is expected to publish a consultation paper, with its release slated between September and October.The proposed paper follows the country's checkered history with crypto after India's central bank banned financial institutions from dealing with the asset class in 2018.
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Those included Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, for allegedly failing to comply with India's anti-money laundering policies.India's position on crypto regulation has evolved under the influence of global developments, particularly after the Financial Stability Board integrated crypto-related policies into the G20 roadmap last year, driving efforts towards unified regulatory standards among emerging economies. By inviting stakeholder feedback, the Indian government aims to strike a balance between fostering innovation and maintaining regulatory oversight in the rapidly evolving crypto landscape.Read more at Decrypt.
- The Supreme Court overturned the ban two years later, allowing crypto trading to resume despite ongoing regulatory concerns.Those concerns include how privately issued crypto presents a macroeconomic risk, particularly relating to stablecoins, to which the RBI has previously called for a ban against digital assets pegged to fiat currencies, such as the U.S. dollar, or commodities, including gold.The consultation paper also follows the government's decisive action against non-compliant offshore crypto exchanges, having recently imposed bans on nine major platforms in December.
