India will complete its crypto consultation paper with the IMF and the World Bank

India will complete its crypto consultation paper with the IMF and the World Bank

Ajay Seth, India’s Economic Affairs Secretary, said on Monday that a consultation document on cryptocurrency is nearing completion and would be presented to the federal government.

Seth said the International Monetary Fund and the World Bank, as well as domestic stakeholders, had contributed to the document at the country’s “ICONIC Week” event, which was organized by the Ministry of Labour and Employment.

While the paper’s specific contents were not revealed, Seth stated that his country will likely attempt to enhance India’s commitment to “some sort of global regulations” on cryptocurrency, according to Asian News International.

“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,” Seth said. “We need a global consensus on crypto regulation.”

The RBI and the Ministry of Finance both published statements in December 2017 equating cryptocurrency to Ponzi schemes. Four months later, the central bank issued a circular forbidding commercial banks and lenders from dealing in crypto and servicing organizations that deal in digital assets.

In March 2020, India’s Supreme Court lifted the restriction, ruling that the central bank’s circular was “unconstitutional.” The government said at the start of last year that it will submit legislation to develop its digital rupee while also prohibiting “all private cryptocurrencies.”

The country ultimately enacted a 30% tax on crypto revenues, which was widely panned by market participants as unjust and potentially harmful to the country’s local digital asset business.

In April, Binance Founder and CEO Changpeng Zhao said that India is a “natural frontrunner” in the creation of the next generation of blockchain applications.

“India is a huge market, as well as a leader in technology, and therefore will be a natural frontrunner for web 3 startups. We are looking forward to working with outstanding startups in India,” he told Inc42 in an interview. “India will be fundamentally important in the evolving crypto narrative,” he added, “I believe that India will be fundamentally important in the crypto narrative.”

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