India Delays Crypto Framework Over Risks
The post India Delays Crypto Framework Over Risks appeared on BitcoinEthereumNews.com. Key Notes A government document reads that crypto regulation could make the sector harder to control. Peer-to-peer transactions and decentralized trades remain hard to regulate despite punitive measures. Unlike India, neighbouring countries are adopting crypto-friendly policies. India has no plans to regulate the crypto sector for now, citing concerns that it could expose the country’s financial system to risks. A recent report by Reuters, based on a government document, reveals that officials are concerned that legitimizing crypto may make it systemic and harder to manage. The report explains that containing crypto-related risks through regulation would be challenging. While a complete ban could tackle speculative activities, it wouldn’t prevent peer-to-peer transfers or decentralized trading. As a result, the government prefers partial oversight, keeping crypto’s use limited within existing tax and anti-money laundering frameworks. Indians currently hold $4.5 billion in crypto and constantly look for the next crypto to explode. According to officials, this figure is neither significant nor a systemic risk to financial stability. India’s Cautious Stance Despite rising global crypto adoption, the Indian government remains cautious. Previous efforts, such as the 2021 draft bill to ban private cryptocurrencies, were shelved, and discussions around crypto regulation were postponed last year. Earlier this year, the Reserve Bank of India (RBI) fined P2P platforms like Faircent, Finzy, Visionary Financepeer, and Rang De for violating lending guidelines, totaling over ₹75 lakh. Currently, global crypto exchanges can register in India after compliance checks but remain excluded from mainstream financial channels. As per the document, the government finds the current limited regulations, backed by taxes and fraud penalties, sufficient to deter speculative risks. Neighbours Move Toward Crypto Adoption Unlike India, several Asian governments are actively supporting crypto adoption and aiming clear regulations for the sector. Singapore remains a strong player in the region, with its Payment…
The post India Delays Crypto Framework Over Risks appeared on BitcoinEthereumNews.com.
Key Notes A government document reads that crypto regulation could make the sector harder to control. Peer-to-peer transactions and decentralized trades remain hard to regulate despite punitive measures. Unlike India, neighbouring countries are adopting crypto-friendly policies. India has no plans to regulate the crypto sector for now, citing concerns that it could expose the country’s financial system to risks. A recent report by Reuters, based on a government document, reveals that officials are concerned that legitimizing crypto may make it systemic and harder to manage. The report explains that containing crypto-related risks through regulation would be challenging. While a complete ban could tackle speculative activities, it wouldn’t prevent peer-to-peer transfers or decentralized trading. As a result, the government prefers partial oversight, keeping crypto’s use limited within existing tax and anti-money laundering frameworks. Indians currently hold $4.5 billion in crypto and constantly look for the next crypto to explode. According to officials, this figure is neither significant nor a systemic risk to financial stability. India’s Cautious Stance Despite rising global crypto adoption, the Indian government remains cautious. Previous efforts, such as the 2021 draft bill to ban private cryptocurrencies, were shelved, and discussions around crypto regulation were postponed last year. Earlier this year, the Reserve Bank of India (RBI) fined P2P platforms like Faircent, Finzy, Visionary Financepeer, and Rang De for violating lending guidelines, totaling over ₹75 lakh. Currently, global crypto exchanges can register in India after compliance checks but remain excluded from mainstream financial channels. As per the document, the government finds the current limited regulations, backed by taxes and fraud penalties, sufficient to deter speculative risks. Neighbours Move Toward Crypto Adoption Unlike India, several Asian governments are actively supporting crypto adoption and aiming clear regulations for the sector. Singapore remains a strong player in the region, with its Payment…
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