The Ministry of Economic Affairs of India has concluded a consultation document on cryptocurrencies, which will then be forwarded to the federal government. The implementation of the document could bring a country with 14 billion people closer to the international regulatory consensus on digital assets.
On Monday, May 30, during an event hosted by the Ministry of Labor and Employment, Economic Secretary for Economic Affairs Ajay Seth announced that his department would end work on a consultation document that would define the country’s position on cryptocurrencies.
The document was prepared in collaboration with industry stakeholders, the International Monetary Fund (IMF) and the World Bank. Seth said the role would strengthen India’s commitment to “some kind of global regulation.”
“Digital assets, whatever way we want to deal with those assets, there has to be a broad framework on which all economies have to be together.”
In response to a question of a possible immediate ban, the official acknowledged that any ban at national level would not only work:
“Whatever we do, even if we take it seriously, countries that choose to ban them will not succeed unless there is a global consensus.”
In 2022, long after the ban was formally lifted, the RBI warned of the threat of “dollarization” posed by cryptocurrencies, while Prime Minister Narendra Modi described the cryptocurrency as a global challenge in a recent virtual speech at the World Economic Forum in Davos. calls for “collective and synchronized action” by all national and international bodies.