As major economies revise their cryptocurrency policies, India is reconsidering its approach to digital assets, a senior government official revealed on Sunday. This reassessment follows recent global developments, including crypto-friendly measures introduced by former U.S. President Donald Trump.

According to Reuters, Economic Affairs Secretary "Ajay Seth" highlighted that evolving international perspectives on cryptocurrency have prompted India to revisit its long-awaited discussion paper on the matter. Originally set for release in September 2024, the paper's publication may face delays as the government incorporates insights from new global policies.

Seth emphasized that the borderless nature of cryptocurrencies necessitates a multilateral approach. "Many jurisdictions have changed their stance on cryptocurrency regarding usage, acceptance, and their strategic importance. We are reviewing our discussion paper in light of these developments," he stated.

India’s Crypto Journey: From Ban to Regulation and Global Cooperation

RBI's Crypto Banking Ban (2018)

In April 2018, the Reserve Bank of India (RBI) issued a circular prohibiting banks from providing services to crypto exchanges and businesses, citing concerns over financial stability, money laundering, and consumer protection.

Supreme Court Overturns Ban (2020)

In March 2020, the Supreme Court of India ruled the RBI's ban unconstitutional, stating it was disproportionate and violated fundamental rights. This decision led to a resurgence in India's crypto trading activities.

Government Proposes Crypto Ban (2021)

In early 2021, the Indian government introduced a draft bill aiming to ban private cryptocurrencies and establish a framework for a central bank digital currency (CBDC). However, the bill was never passed.

Crypto Taxation and Regulation (2022)

The Indian government introduced a 30% tax on crypto gains and a 1% TDS on transactions in 2022, discouraging speculative trading but acknowledging crypto as an asset class.

Global Collaboration and Ongoing Review (2023-Present)

Under its G20 presidency, India has pushed for a globally coordinated regulatory framework for cryptocurrencies. The government is currently reviewing its policies, influenced by global shifts and evolving regulations in other countries.