India Unlikely to Introduce Crypto or Web3-Specific Legislation Soon, Says Senior Politician

India Unlikely to Introduce Crypto or Web3-Specific Legislation Soon, Says Senior Politician

India’s senior politician, Jayant Sinha, has stated that India is unlikely to introduce a specific legislative bill for cryptocurrencies or Web3 technologies in the near future. Sinha, who oversees the financial evolution of the nation as Chair of the Standing Committee on Finance, emphasized the importance of finding a balance between encouraging innovation and ensuring safety. He mentioned three considerations that make it unsuitable for a crypto-specific bill to be introduced at this time. Firstly, he wants to see powerful use cases for India before moving forward with any legislation. Secondly, global standards are still evolving, and with elections taking place in important countries in 2024, it is uncertain whether the standards will be developed by then. Lastly, the recent collapse of FTX and regulatory action against Binance have added to the hesitation. Sinha suggested that India may rely on a series of policy decisions to regulate the space. India has already implemented anti-money laundering rules and a tax structure for cryptocurrencies. Sinha also reiterated concerns raised by the central bank of India regarding the feasibility of enabling crypto assets in a country with capital controls. While India remains cautious about crypto, Sinha acknowledged the revolutionary nature of Web3 technologies and encouraged the audience to propose a white paper or regulatory framework for consideration.

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TIS Staff

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