India Delays Cryptocurrency Policy Paper Amid Other Priorities

According to PANews, India has yet to release a discussion paper outlining its stance on cryptocurrency policy, as officials are currently focused on other priorities. Initially expected in September after consultations with stakeholders such as the central bank and market regulators, the release of the document remains uncertain with no set timeline, according to two informed sources. India, the world's fifth-largest economy, has not yet established comprehensive cryptocurrency legislation. The anticipated discussion paper is seen as a step towards this goal. While the country does not regulate cryptocurrencies, it has imposed high taxes on the industry and requires cryptocurrency entities to register with the Financial Intelligence Unit of India (FIU-IND) to comply with anti-money laundering (AML) and counter-terrorism financing standards set by global bodies like the Financial Action Task Force (FATF). Officials within India's policy environment are facing more urgent demands, including the upcoming International Monetary Fund (IMF) and World Bank 2024 annual meetings at the end of this month. They must also manage multilateral and bilateral meetings with other countries, as regional conflicts—such as the ongoing wars between Russia and Ukraine and between Israel and parts of the Middle East—continue. Additionally, the Finance Ministry must focus on the election year, preparing two budgets: an interim budget in February before the July elections and a full budget post-elections, while also conducting nationwide consultations.