India Advances Towards Comprehensive Cryptocurrency Regulations in Collaboration with IMF and FSB
Summary:
India is working on a comprehensive regulatory framework for cryptocurrencies based on joint recommendations from the IMF and FSB. The framework, expected to become legislation in the next 5-6 months, includes measures such as advanced KYC requirements, real-time audits, uniform taxation, and potential authorized dealer status for crypto exchanges. The Finance Ministry confirms that banning cryptocurrencies is no longer an option and a global approach to regulation is favored. This development signals optimism for the crypto industry in India.
India is making progress towards establishing a regulatory framework for cryptocurrencies, with the aim of enacting legislation within the next 5-6 months. The Indian government, in collaboration with the International Monetary Fund (IMF) and the Financial Stability Board (FSB), is working on a comprehensive set of guidelines that take a global approach to crypto regulation. These recommendations encourage market regulation rather than an outright ban, and provide a foundation for independent yet cooperative legislative efforts by G20 nations. Siddharth Sogani, CEO of CREBACO, a firm that has worked closely with government agencies, has confirmed that India is focusing on a five-point regulatory approach. This includes implementing advanced Know Your Customer (KYC) requirements for crypto companies, conducting real-time proof-of-reserve audits, establishing a uniform taxation policy, potentially granting authorized dealer status to crypto exchanges, and mandating key positions such as Money Laundering Reporting Officer (MLRO) for platforms. Sogani emphasizes that regulations are vital for the crypto ecosystem to flourish and to mitigate risks associated with scams and illicit activities. Prime Minister Narendra Modi has consistently called for a global approach to crypto regulations, and the Indian government has now taken the IMF-FSB recommendations onboard, with plans to formulate regulations based on their framework. It is understood that banning cryptocurrencies outright is no longer under consideration, as it would be challenging for one country to do so while others are embracing them. While India currently lacks specific crypto regulations, the Finance Ministry is optimistic that a comprehensive legislation can be developed in the near future, following the IMF-FSB guidelines.
Published At
9/11/2023 10:02:38 AM
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