India's crypto regulations delayed until 2025
India awaits global clarity on crypto and web3 regulation.
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India is taking a cautious approach to crypto and Web3 legislation, with Indian Parliament Member Jayant Sinha indicating that the country is unlikely to introduce a crypto- or Web3-specific legislative bill anytime soon, perhaps only by mid-2025.
First, Sinha noted that use cases for cryptocurrencies and Web3 applications are evolving locally. More time is needed to identify the most impactful applications for India’s economy and financial system.
“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,” the Indian legislator stated.
Sinha also indicated that global regulatory standards surrounding these technologies remain a work in progress. And with key countries like the US and UK holding elections in 2024, additional clarity on international norms is at least 18 months away.
Rather than legislation, Sinha suggested India will rely on a series of narrow policy decisions to act as a de facto regulatory framework, one that aligns with forthcoming G20 recommendations. Rules already in place demand crypto exchanges implement anti-money laundering checks and impose a tax on investments. For now, these piecemeal steps may suffice.
Sinha echoed the concerns of India’s central bank regarding crypto, particularly given India’s capital controls and the non-freely tradable nature of the rupee. He emphasized the need for caution when dealing with crypto in India and acknowledged the revolutionary potential of the technologies underlying Web3.
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