India Eyes Revised Crypto Regulations as Global Trends Evolve

India is rethinking its approach to cryptocurrencies as global attitudes shift toward digital assets, according to a senior official.
The country’s reassessment follows the growing adoption of crypto-friendly policies by various nations, including the United States.
This reevaluation could further delay the release of a long-awaited report on cryptocurrencies, initially slated for September 2024. Economic Affairs Secretary Ajay Seth emphasized that the rapidly changing international environment requires India to revisit its crypto stance. He acknowledged that multiple countries have adjusted their policies on digital assets, influencing India’s decision to reconsider its regulations.
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Seth pointed out that because digital assets operate across borders, regulating them unilaterally is increasingly ineffective. While he didn’t specifically reference the United States, the shift in India’s approach follows recent actions by former President Donald Trump, who is advocating for major reforms in U.S. cryptocurrency policy. Trump has also initiated the formation of a cryptocurrency working group aimed at crafting new regulations and exploring a national crypto reserve.
Despite India’s stringent regulations and hefty taxes on crypto trading, the market has remained active. Last year, the Financial Intelligence Unit (FIU) targeted foreign exchanges for not adhering to local rules. In December 2023, several international exchanges, including Binance, were issued notices. Binance, in particular, faced a fine of 188.2 million rupees ($2.25 million) in June 2024 after registering with the FIU to regain access to the Indian market.