India plans to implement regulations regarding crypto in 2023

Image: Shutterstock

During a press conference on February 4th, the Secretary of Economic Affairs in India, Ajay Seth, revealed that the government plans to implement regulations regarding crypto in 2023.

In the recent budget speech by Nirmala Sitharaman for the 2023-24 fiscal year, the finance minister did not discuss any changes or policies regarding crypto and virtual digital assets. However, the 2023 Economic Survey highlighted the need for a unified approach to regulating the crypto space due to its growing popularity.

The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, has repeatedly advocated for a ban on crypto and has called for regulation to prevent their use. He has expressed worry that the RBI may lose its ability to monitor transactions if crypto becomes legalised in India.

When giving an interview to the local media, the Economic Affairs Secretary emphasised the upcoming regulations regarding crypto. He emphasised that although the technology behind crypto, like blockchain, can offer benefits, its utilisation in the financial industry presents various risks.

The government official also highlighted the overlooked risks associated with the growing use of these digital tokens.

In a post-budget interview with the Network18 Group last week, the Finance Minister stated that it is important to establish a global standard operating procedure for crypto regulation in her upcoming meeting at the G20. According to information, the first finance meeting of the G20 is scheduled to take place in Bengaluru on February 24th and 25th.

Sitharaman stated in the interview that the goal is to establish a worldwide standard operating procedure for regulating crypto while giving the central bank the authority to issue digital currencies.

The Finance Minister emphasised the importance of joint action rather than individual regulations in one country and also talked about the importance of international collaboration in addressing the cross-border nature of technology, stating that it is vital for all nations to join forces in taking necessary measures.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash