The Indian government is likely to float a discussion paper on the policy framework options for crypto assets in June, The Economic Times reported citing people familiar with the matter. This comes amid rising demand for digital currencies on the back of US President Donald Trump’s support for them, the report added.
The discussion paper will possibly draw from the International Monetary Fund (IMF) and Financial Stability Board’s (FSB) synthesis paper. It will also seek opinions on practices adopted by various jurisdictions, the report said.
However, a senior government official told the publication that no knee-jerk decision would be taken, keeping into consideration the widespread impact it may have on the industry. The call will be taken keeping India’s national interest in mind, the report further cited the source as saying.
Moneycontrol couldn’t independently verify the report.
Earlier in March, Moneycontrol had reported that the government's stance on cryptocurrency will likely take into account the shift in the United States approach under President Donald Trump. "Global situation is changing, so the approach may have to change," one of the sources said. Another government official added, "We are in a wait-and-watch mode on what President Trump decides."
Since 2023, an inter-ministerial group, led by the finance ministry, has been working on a discussion paper on cryptocurrency to outline the government’s stance.
Crypto trading is booming in India though cryptocurrencies are not recognised as legal tender. There is no regulatory framework for cryptocurrency operators but that hasn’t stopped Indians from putting their money in bitcoin, ethereum, dogecoin and other such currencies.
If the government decides to take a cue from the US, it would be a major shift in stance from the then Reserve Bank of India (RBI) governor Shaktikanta Das's statement in October that cryptocurrencies pose a significant risk to financial and monetary stability as well as the banking system.
In his first week in office, Trump signed an executive order to promote United States leadership in digital assets such as cryptocurrency by creating a strategic bitcoin reserve and a digital assets stockpile.
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