India to release crypto consultation paper by October

India’s government is finally getting off the fence about cryptocurrency. A consultation paper on crypto regulation is set to drop sometime between September and October, according to local media. 

The Department of Economic Affairs (DEA) wants to hear from everyone—whether you’re deep into the crypto game or just keeping an eye on it—about how to handle digital assets in the country.

The paper is expected to cover everything from the potential risks to the rules that might be necessary to keep things in check. 

Finance Minister Nirmala Sitharaman has been making the rounds, talking about how the G20 nations are now on the same page regarding cryptocurrency regulations. 

She mentioned back in October 2023 that while there’s a global understanding of what needs to happen, each country—including India—will have to figure out its own specific rules. 

India will need to come up with its own strategies to deal with the unique challenges and opportunities that crypto presents there.

Ajay Seth, the Economic Affairs Secretary, also chimed in around September 2023, saying the DEA would carefully look at the recommendations that have come out of the G20 discussions. 

The country banned nine offshore crypto platforms, including Binance and Kraken, for violating the Prevention of Money Laundering Act (PMLA) of 2002. Though Binance managed to bounce back by December 2023 after registering with the Financial Intelligence Unit in India. 

Prime Minister Narendra Modi has called for a global framework to manage crypto, stressing that we need to get it right before things get out of hand. Back in 2021, he even warned that if we’re not careful, crypto could end up in the wrong hands. 

He’s been pushing for democratic nations to work together to make sure that crypto is used for good, not for shady transactions.

Modi’s also big on using technology to improve lives, which is why his government rolled out the Unified Payment Interface (UPI). It’s one of the reasons digital payments have taken off even in rural parts of India.