On Monday, Economic Affairs Secretary Ajay Seth said that the Indian government would be finalizing a consultation paper on cryptocurrencies with inputs from several stakeholders and institutions, including the World Bank and the IMF.
Our consultation paper is fairly ready, We have gone through a deep dive consulting with not just the domestic and institutional stakeholders but also organizations like IMF and World Bank. We hope that we will soon be in a position to finalize our consultation paper. Simultaneously we are also beginning our work for some sort of a global regulation to determine what role India can play.
Ajay Seth, Economic Affairs Secretary
It has been stated on numerous occasions that the Reserve Bank of India (RBI) has expressed its reservations about such virtual currencies because they are perceived to be a threat to macroeconomic stability.
The crypto industry in India has suffered from a slew of setbacks as a result of a new tax on cryptos, rough launches of crypto exchanges such as Coinbase and falling trading volumes, payment processors blocking exchanges, and the next phase of the crypto tax a 1% deducted-at-source tax due on July 1 which has rendered exchanges vulnerable.
Indian Prime Minister Narendra Modi reiterated his position virtually at the 2022 World Economic Forum’s annual Davos conference:
Cryptocurrency is an example of the kind of challenges we are facing as a global family with a changing global order. To fight this, every nation, every global agency needs to have collective and synchronized action.
