[NEWS] India may review cryptocurrency regulations; Minister of Economy says "in response to changes in global situation"

There is a possibility that India will review regulations on cryptocurrencies in light of other countries' attitudes toward them. Reuters reported on the 2nd.

This was said by India's Minister of Economic Affairs Ajay Seth to Reuters. With the inauguration of President Trump, who is friendly toward cryptocurrencies, as other countries consider adopting cryptocurrencies such as Bitcoin (BTC), India may join in.

In an interview, Minister Seth said, "There has been a change in attitude in one or two jurisdictions regarding the use and acceptance of cryptocurrencies and how they view their importance. In that context, we are reviewing the consultation document once again."

India was scheduled to release a consultation document on cryptocurrency regulations in September last year, but it has still not been made public. Given Minister Seth's policy, the release of the consultation document is likely to be further delayed with changes or additions to the content.

There have been a series of policy changes regarding cryptocurrency regulations in India. At one point, the government announced a complete ban on cryptocurrency, and the situation is unstable.

In particular, the Reserve Bank of India has emphasized a negative stance toward cryptocurrency, which differed from the position of SEBI (Securities and Exchange Board of India). Nevertheless, it has been revealed that last year, officials have shifted to a more positive stance toward regulatory development.

Although the situation toward regulatory development is unstable, India is also known as one of the world's leading cryptocurrency powers.

According to data released by blockchain analysis company Chainalysis in September last year, India has ranked first in the world in the spread of cryptocurrency for two consecutive years. In addition to active trading on centralized exchanges, it has been confirmed that DeFi is also widely used.

On the other hand, it has been pointed out that some investors are increasingly using cryptocurrency exchanges in other countries due to tax considerations, such as the imposition of a 30% tax on profits generated by cryptocurrency trading in India.

Taking this background into consideration, India appears to be aiming to prevent the outflow of domestic assets and promote the revitalization of domestic exchanges by establishing regulations on cryptocurrencies.

Reference: Reuters
Image: Shutterstock

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