The Indian government is finalizing a national framework for cryptocurrencies.
India is not among the countries that are known to be particularly crypto-friendly. Only fairly recently, a draconian crypto tax
forced Indian exchanges offline
as they battled with regulatory uncertainty.
However, the Indian government, albeit no friend of crypto, is at least working on some clarity regarding cryptocurrencies. The Department of Economic Affairs of India is putting the finishing touches on a consultation paper drafted in cooperation with the International Monetary Fund and the World Bank. The paper is to define India's stance on cryptocurrencies and, according to Economic Affairs Secretary Ajay Seth, will strengthen the country's push for regulations:
"Digital assets, whatever way we want to deal with those assets, there has to be a broad framework on which all economies have to be together."
India would reportedly not consider an outright ban of cryptocurrencies in that case unless there was a global consensus in favor of it. Rather, the draft can be understood as a summary of India's understanding of what a possible global consensus could be and where India fits in with that.
Following the country's long-standing distrust of cryptocurrencies, it is hard to see much more positive news coming out of India soon - not least because India's central bank warned
of possible dollarization of the Indian economy with cryptocurrencies.
Indian crypto bulls will have to wait a little longer for good news.
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