India is set to release a discussion paper on its crypto policy before September, seeking stakeholder feedback and identifying potential regulatory frameworks beyond anti-money laundering and counter-terrorism financing standards.
The paper will also suggest regulations for crypto in India. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) will play central roles in the policy review.
The RBI has expressed concerns over the macroeconomic risks posed by digital assets and advocates for strict action.
SEBI supports a regulatory approach and proposes that oversight be distributed among multiple authorities. India’s Finance Minister Nirmala Sitharaman has reaffirmed the 1% Tax Deducted at Source (TDS) rate on crypto for the fiscal year 2024-2025.
Despite ongoing discussions, India has not introduced comprehensive crypto legislation, and the recent extension of AML and CTF standards to crypto and intermediaries aligns with global regulatory practices.
