India’s Upcoming Crypto Legislation Will Be ‘Distinct and Unique’
Cryptocurrency legislation in India will be “distinct and unique,” said Jayant Sinha the chairman of India’s Parliamentary Standing Committee on Finance. “We have to balance stability and growth but we recognize how important this whole area of crypto is.”
Update on India’s Crypto Legislation
Jayant Sinha, a lawmaker of the ruling Bharatiya Janata Party, discussed India’s cryptocurrency legislation Wednesday at an event organized by the Blockchain and Crypto Assets Council (BACC) of Internet and Mobile Association of India (IAMAI).
According to Sinha, who also chairs the India’s Parliamentary Standing Committee on Finance, it is not possible for India to adopt the cryptocurrency policies used in advanced economies because the nation still does not have a full capital account convertibility. In other words, India’s crypto policies will not follow the U.S., Japan, or El Salvador.
The lawmaker explained:
“Our solution will have to be distinct and unique simply because of our unique circumstances. We have to balance stability and growth but we recognize how important this whole area of crypto is.”
The committee will consider crypto legislation with national security in mind, said Sinha, continuing:
“We have to be very watchful about what happens to these crypto assets and cryptocurrencies. Use of these kinds of crypto instruments in terror financing and for domestic security threats is something we have to be mindful of.”
R Gandhi, former deputy governor of the Reserve Bank of India (RBI), expressed his opinions earlier that crypto must be regulated as an asset or commodity in India and governed by existing laws. He said:
“Once cryptocurrencies are accepted, rules governing commodity exchanges could apply and the coins could be used to pay for goods and services. Then automatically people can start buying, selling and holding.”
Previously, there were rumors of the government planning to ban all cryptocurrencies like bitcoin, allowing only central bank digital currencies (CBDCs) to be issued by the RBI, which the central bank has since cleared.
According to a recent report, India is among the top three countries in the world that have the highest crypto ownership. Indians hold over $40 billion worth crypto assets.
