Despite growing global traction for cryptocurrencies, including the recent launch of meme coins, India’s upcoming Union Budget is unlikely to make any mention of the sector.
Sources tell Business Today Television that there have been no significant discussions on cryptocurrencies in India’s policy corridors. The government appears committed to following global regulatory frameworks and the upcoming crypto consultation paper. “India will prioritise policies that are beneficial to its economy, without being influenced by other countries,” a senior finance ministry official told Business Today TV.
In the last Parliament session, Minister of State for Finance Pankaj Chaudhary addressed a question on the timeline for regulating virtual digital assets (VDAs).
He stated, “All jurisdictions, including India, are expected to evaluate their country-specific characteristics and risks, and engage with standard-setting bodies and the G20 to appropriately consider any necessary measures for crypto assets.”
A panel, led by the Secretary of the Department of Economic Affairs (DEA), is expected to release a consultation paper on cryptocurrencies by March 2025. The paper will seek feedback from stakeholders to shape a regulatory framework for VDAs.
India has played a pivotal role in shaping global crypto regulation. Under its G20 Presidency in 2023, finance ministers and central bank governors adopted a road map for regulating crypto assets, as proposed by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The road map opposes a blanket ban, instead recommending comprehensive regulatory and supervisory measures.
Additionally, the G20 New Delhi Leaders’ Declaration endorsed the FSB’s high-level recommendations for overseeing crypto-asset markets and global stablecoin arrangements.
Domestically, India has maintained a cautious approach toward cryptocurrencies. In 2022, a 30% tax on VDA profits and a 1% TDS on VDA transactions were introduced. Earlier, the Reserve Bank of India (RBI) banned financial institutions from facilitating VDA transactions in 2018, but the Supreme Court overturned the ban in 2020, marking a key turning point for the industry.