India Reconsiders Bitcoin Stance Amid Global Shifts

India is reassessing its stance on digital assets as perceptions shift globally. This was reported by Reuters, citing Ajay Seth, the country’s Secretary of Economic Affairs.

According to him, the timeline for publishing the draft document on cryptocurrencies, initially planned for September 2024, has been postponed once again.

The reason is the changing positioning of the asset class in other countries.

Seth noted that since cryptocurrencies “do not believe in borders,” India’s position cannot be unilateral.

The official did not specifically mention the United States, where President Donald Trump signed an order to establish a task force on digital asset markets.

In early 2021, India announced a potential legislative ban on cryptocurrencies, even considering criminal liability for holders. By mid-year, information emerged that authorities would legalize digital currencies as an asset class.

In November, the government again expressed intentions to ban most “private currencies.” This sparked panic in the local market, leading to a short-term local drop in Bitcoin’s price by 15%.

Despite the lack of a regulatory framework, in 2022, India tightened levies on traders and investors, and later, the country’s Reserve Bank Governor Shaktikanta Das warned citizens against investing in cryptocurrency.

In July 2023, the Supreme Court reprimanded the cabinet for delays in developing a regulatory framework for digital assets.

In December of the same year, India’s Financial Intelligence Unit accused nine crypto exchanges of operating without registration and violating anti-money laundering and counter-terrorism financing laws.