India Postpones Crypto Bill: Web3 Regulation on Hold for at Least 18 Months – Coinpedia Fintech News
- India’s crypto and Web3 enthusiasts face a longer wait for regulatory clarity as Jayant Sinha senior lawmaker announced a delay in introducing a specific legislative bill.
- Sinha emphasized the need to first identify powerful use cases for Web3 and crypto specific to India’s context during interview with CoinDesk at IBW’ 23 Conference.
- 2024 marks an election year for major economies like India, the US, and potentially the UK. Sinha expressed doubts about the development of clear global standards for crypto during this period.
The recent collapse of FTX and regulatory action against Binance have cast a shadow on the crypto industry. Sinha believes these events necessitate a wait-and-see approach to understand the future landscape of the space.
India’s Approach: Policy Decisions Over Legislation
Although a specific crypto bill seems unlikely in 2024, India is taking a different route. It aims to implement a de facto regulatory framework through a series of policy decisions. These are expected to align with the Financial Stability Board’s recommendations by the end of 2025. Anti-money laundering rules and a tax structure for crypto are already in place, which may suffice for now, according to an official source.
Central Bank’s Concerns
Sinha echoed the concerns of India’s central bank regarding crypto. He highlighted the challenges posed by capital controls in India, where free trading of the rupee is restricted, making it difficult to embrace crypto wholeheartedly. He contrasted this with other economies with freely tradable currencies like Singapore, Korea, and the US that can be more open to crypto adoption.
“In India where we have capital controls when you can’t freely trade the rupee for us to enable crypto assets is not really feasible,” Sinha said. “Unlike other economies like Singapore, or Korea or the US that have freely tradable currencies, and can get into crypto with a lot less trepidation. As far as India is concerned, we have to be very, very careful, very, very cautious when we talk about crypto. But crypto friends is just one use case for what is a revolutionary set of technologies that underlie Web3.”
Focus on Underlying Technology
Despite the cautious approach to crypto, Sinha acknowledged the revolutionary potential of the underlying Web3 technologies. He stressed that while crypto is a significant use case, it’s only one aspect of a transformative technological landscape.
Overall, the delay may be disappointing for some, it suggests a more thoughtful and cautious approach by Indian authorities. By focusing on use cases, global standards, and industry evolution, India aims to strike a balance between encouraging innovation and ensuring financial stability. The next 12 to 18 months will be crucial in shaping India’s final stance on crypto and Web 3.
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