Amid all the pessimism surrounding crypto regulations in India, Finance Nirmala Sitharaman has finally cleared some air. During her recent interaction at Stanford University, Sitharaman said that India will have a measured approach to the regulation of digital assets.
She assured that the government won’t rush through with its decision of regulating crypto. Sitharaman added:
“It will have to take its time…all of us to be sure that at least with a given available information, we’re taking the decern decision. It can’t be rushed through”.
India has so far accepted a tough stand towards digital assets. Earlier this year in February 2022, the government announced a 30% tax on digital asset gains, one of the highest in the world. This has deterred a lot of investors to participate in the crypto space. Besides, we have also witnessed a drop in the crypto trading volumes on Indian exchanges.
On the other hand, exchanges are having a tough time dealing with fiat payment systems such as UPI. NPCI, the regulatory body behind UPI, has also flagged some of the top exchanges such as Coinbase and WazirX for using the UPI payments method.
But despite this, exchanges have been keen on setting up their base in India. They’re confident that the regulations will evolve over time thus eyeing big opportunities in the Indian market.
Indian FM: Won’t Stifle Crypto Innovation
During her recent address at Standford, the Indian FM assured the diaspora that the government’s goal is not to stifle innovation in the crypto space. They also look forward to promoting new developments in blockchain. Finance Minister Sitharam said:
“So, our intention is in no way to hurt this (innovation around crypto)…but (we need to) define for ourselves…”
The FM also cited concerns over the use of crypto for money laundering and illicit financing. At the same time, the Indian government is quite positive about having its own central bank digital currency (CBDC).
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