India is in the final stages of preparing a discussion paper on crypto assets that will guide future policy choices, sources told Business Today TV.
The paper is almost complete and will be shared soon for public feedback. It aims to explore regulatory paths and draw on global best practices, particularly a synthesis by the IMF and the FSB.
Contents of the Discussion Paper
The upcoming paper will lay out various regulatory options and highlight lessons from international frameworks. It leans heavily on a joint IMF and Financial Stability Board paper.
Once published, it will ask stakeholders for input to shape India’s broader approach to virtual digital assets. A senior official said the document is being fine-tuned and will invite comments to inform the government’s next steps.
Industry Response
Sumit Gupta, co-founder and CEO of CoinDCX, shared on X(Twitter) that the paper is due in June 2025. He expects it to detail key risks in the crypto sector and seek public views without committing to specific rules just yet.
Gupta noted that the release will finally let investors, industry players, and media provide feedback on crypto policy.
He also pointed out that the FSB began a thematic peer review of its members’ adherence to the global crypto framework on February 21, 2025, with a progress report due in October 2025. According to Gupta, this is a chance for India to lead in Web3 innovation.
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Measured Government Approach
India has taken a cautious stance on crypto so far. In 2022, the government imposed a 30% tax on gains from virtual digital assets, but made it clear that paying tax does not mean the assets are legally recognised.
Crypto exchanges must register with the Financial Intelligence Unit to operate. A top official said no hasty decisions will be made and that policy will reflect national priorities. They stressed that crypto’s complex impact on the broader economy calls for careful study.
Global Role During G20 Presidency
When India held the G20 Presidency, it pushed for a global regulatory road map that rejected outright bans and backed strong oversight.
Finance ministers and central bank governors supported this approach. India’s leadership in that dialogue underscored its interest in shaping international crypto standards rather than lagging.
Supreme Court Criticism
Recently, the Indian Supreme Court criticised the federal government for delaying a formal crypto framework. The court warned that the lack of regulation has allowed the misuse of digital assets, especially Bitcoin.
Local reports say the justices expressed serious worry that extended inaction could harm investors and the financial system. With this discussion paper, India aims to balance innovation with stability in the crypto space.
Also Read: Pakistan To Establish Strategic Bitcoin Reserve and Plans Never To Sell, Is India Lacking Behind?