Exploring India’s 5-Point Crypto Legislation and Web 3.0

Crypto Regulations in India

India is taking a global approach to the crypto regulatory framework based on the joint recommendations of the International Monetary Fund (IMF) and the Financial Stability Board (FSB). According to Siddharth Sogani, CEO of CREBACO, which has worked with government agencies and ministries, the Indian government is creating a five-point crypto legislature that could be legally enacted in the next 5-6 months.

At the G20 summit, India and other G20 nations welcomed the IMF-FSB crypto recommendations, which call for regulating the crypto market rather than a blanket ban. These are a set of regulatory guidelines/suggestions that G20 countries can use to create their own crypto legislation.

CREBACO, a blockchain analytic firm that has consulted with several G20 committees and nations, has revealed that India is working on a five-point regulatory approach with a focus on global collaboration, particularly in regards to crypto taxation.

Crypto Regulations and the Five-Point Framework

Sogani mentioned that the global community has come to accept that a ban on cryptocurrencies is not effective and many countries are now opting for a regulatory approach rather than a total ban. The US and Europe have already established certain rules for cryptocurrencies, while India has chosen to tax it. He added:

India has been advocating for global crypto regulations for some time, with Prime Minister Narendra Modi reiterating the same during the G20 summit. An executive at the Finance Ministry also confirmed that the IMF-FSB crypto recommendations have been taken into consideration and the government will be formulating regulations around it in the coming months.

The Finance Ministry executive said that the IMF-FSB recommendations offer a good “framework to decide our own way forward. The foundation is ready, beyond that how much we want to go it is for us to decide in the coming months and then take a call.”

The official also clarified that banning cryptocurrencies is not an option and stated that “If you want to ban it (cryptocurrency), go ahead and ban it. But if the rest of the countries are not banning it, it will be extremely difficult for one country to do so.”

India currently doesn’t have any specific regulations on cryptocurrencies, though the country imposed a 30% tax on crypto gains in 2022.