Breaking: India Bullish On Crypto Regulation With Latest Economic Survey?
India crypto regulation news: In what comes as a much needed explanation around crypto regulation in India, the country’s authorities highlighted the need for common global initiatives. Interestingly, the report also mentioned the role of crypto asset exchanges, wallet providers, and crypto conglomerates in the digital assets ecosystem. It said these entities are requiring users to trust centralized entities, as opposed to the idea of decentralization cryptocurrencies are based on. The government expressed its views on the lack of global standards for unbacked crypto assets.
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Crypto Market Volatility
Although the Economic Survey 2023 report acknowledged that the global response to cryptocurrencies is evolving, it further expressed concerns around lack of regulation. The Indian government described crypto assets as new forms of digital assets implemented using cryptographic techniques. With the heavy volatility in recent times, the crypto market shrunk from $3 trillion to $1 trillion in the space of just 14 months, it said.
“The geographically pervasive nature of the crypto ecosystem necessitates a common approach
to the regulation of these volatile instruments.”
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Is This Bullish News?
In the context of India’s reluctance to embrace the crypto market in recent years, its latest call for bridging a global regulatory initiative is in many ways encouraging. The government had in fact mentioned case studies on how the European Union, Japan, Switzerland, UK, Albania and Nigeria are regulating the crypto industry. Regulators are find it challenging to keep track of the new and emerging issues in the fast-moving industry, India said, perhaps justifying its slow and conservative approach domestically.
It explained that the creation of new unregulated intermediating entities is making it challenging for regulation. Also, it stressed on the issue of wealth concentration among crypto whales. Around 85 per cent of all circulating Bitcoin is held by 4.5% of entities, it added.
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Meanwhile, the Indian crypto community is hoping for tax relief in the upcoming budget presentation. Although the hopes of any relief are low, any further clarity on the country’s stance will be closely looked at. Or are there any surprises coming in the way?