the indian government reportedly will decide and finalize the cryptographic consultation document. This consultation document will include input from other stakeholders and institutions such as the World Bank and the International Monetary Fund.

This will then be sent to the federal government. The idea or motive behind establishing the document is to ensure that India as a whole is under the radar of the international regulatory consensus regarding cryptocurrencies or digital assets.

Ajay Seth, Secretary for Economic Affairs of India, mentioned that this crypto consultation paper is very close to completion as it is in its final stages. This was discussed at the country’s “ICONIC Week” event, organized by the Ministry of Labor and Employment.

Ajay Seth mentioned that,

Digital assets, however we want to deal with those assets, there has to be a broad framework where all economies have to be together. We need a global consensus on crypto regulation.

The exact details of the cryptographic consultation document are not disclosed

The consultation document is supposed to provide the country’s stance on cryptocurrencies. Ajay Seth stated that this document would help strengthen India’s stance on the asset by providing “some sort of global regulations”.

The details of the cryptographic consultation document have not been disclosed. Clarity around the digital asset has been murky in India and has also been affected by regressive tax systems. Since 2017, the Reserve Bank of India has issued statements talking about how cryptocurrencies are Ponzi schemes.

After that, a few months later, the Central Bank also circulated that commercial banks and lenders and other service entities that do business with digital assets will be prohibited. The IMF mentions that crypto assets are high on India’s agenda at the moment.

Ajay Seth also stated that,

However we want to deal with those assets, there has to be a broad framework where all the economies have to be together.

Related Reading | What do we know about India’s CBDC and its graded approach?

There is still no clarity on a total ban

It is not yet clear if India is considering an outright ban for the asset. The government official concerned stated that,

Whatever we do, even if we go to the extreme, the countries that have chosen to ban, cannot succeed unless there is a global consensus.

He further mentions that India is considering the regulations applied in other countries and then decides to set its own digital asset policy,

For any country, if there is a global consensus around regulations, again there has to be a broad framework for country participation.

At the moment, the ban has been thrown out by the Supreme Court of India in March 2020 as it fell under the label of “unconstitutional”.

Nirmala Sirtharaman, the Minister of Finance, stated that the decision regarding cryptocurrencies should not be rushed. It is a matter of time until India finds out what the country’s stance on cryptocurrencies will be.

Related Reading | Will India impose 28% GST on all crypto transactions?

Bitcoin was trading at $31,000 on the one-day chart | Source: BTCUSD on TradingView