India’s Finance Ministry Awaits Analysis of Nation-Specific Crypto Risks

India stands at the precipice of embracing the crypto realm within a secure legal framework designed to protect its citizens from potential financial risks. Ahead of this move, the country is meticulously evaluating the potential impacts and risks associated with cryptocurrencies on its established financial systems. Pankaj Chaudhary, Minister of State for Finance, recently conveyed this insight, highlighting that the New Delhi Leaders’ Declaration has embraced the G20’s finalized crypto roadmap for potential adoption.

In a statement shared with the Rajya Sabha, Chaudhary indicated, “All jurisdictions, including India, are anticipated to assess the distinctive characteristics and risks inherent in their respective countries to determine appropriate measures concerning crypto assets.”

The crypto roadmap crafted under India’s Presidency within the G20 provides flexibility for emerging markets and developing economies (EMDEs) to tailor the outlined regulations to align with their unique economic and legal frameworks.

“India has been ranked at the top in grassroots crypto adoption, according to the Chainalysis 2023 Global Crypto Adoption Index. No wonder then, that it is critical for India to develop a robust crypto asset regulatory framework that ring fences the ecosystem from bad actors and unscrupulous incidents, while promoting innovation and providing Indians the opportunity to be a part of this exciting new global emerging tech, and in fact lead this change. We welcome the Finance Ministry’s response in the Parliament today on measures for effective regulation of crypto-assets,” said R Venkatesh, SVP and Head of Public Policy at CoinSwitch.

As of now, no deadline has been issued to the G20 nations concerning the adoption of the crypto roadmap. For India, the deployment of these final crypto laws could still be at least 18 months away. This information was disclosed by Jayant Sinha during the India Blockchain Week that is being held in Bengaluru. As the Chair of the Standing Committee on Finance in India’s Parliament, Shah is a parliamentarian from the ruling Bharatiya Janata Party (BJP).

“Regulators and policymakers are responsible, not just on the innovation side, which of course we want to encourage, but also on the safety side. We have to really find that balance and that balance is going to evolve over the next 12 to 18 months,” Coindesk had quoted Sinha as saying at the time.

Simultaneously, Chaudhary informed the Rajya Sabha that currently, the government refrains from officially registering foreign crypto exchanges, withholding legal authorization for their operations within the country’s jurisdiction.