- India to issue a discussion paper on crypto regulation in June 2025
- The paper will explore policy options, involving consultation with key stakeholders
- Taxation and compliance measures are already in place, but legal clarity remains.
India will likely publish a discussion paper in June 2025 to explore policy frameworks for crypto assets. This step comes as digital currencies gain more traction globally, partly thanks to growing political backing in the United States. According to India Times, the government aims to consult stakeholders before finalizing any regulatory stance.
Policy Paper to Set Groundwork for Regulation
India’s Ministry of Finance is putting together this discussion paper to map out potential paths for regulating virtual digital assets (VDAs). According to officials familiar with the matter, the main idea is to get feedback and start a dialogue with stakeholders, not to roll out new laws immediately.
Related: Crypto Market Pulse: Bitcoin ATH Volume Down 50%, India Tax Reform Pressure Mounts
The paper will study how other countries are approaching crypto regulation and see what kind of rules might work best for India. The goal is to establish clear guidelines that align with national interests and financial stability while keeping pace with international developments.
Where India Stands Now: Taxed, Tracked, But Not Officially Legal
Right now, India’s stance on crypto is a bit murky. Back In the 2022–’23 budget, the government imposed a 30% tax on profits from digital assets. However, this did not grant legal recognition or regulatory status to cryptocurrencies.
To enhance oversight, the government has also required all crypto exchanges operating in India to register with the Financial Intelligence Unit (FIU). This step will ensure compliance with anti-money laundering (AML) and counter-terrorism financing laws.
Despite these moves, the lack of a comprehensive policy framework has left the industry in a regulatory grey area.
India’s Central Bank Still Worried About Risks
The Reserve Bank of India (RBI), the country’s central bank, has consistently raised alarms about the risks associated with cryptocurrencies. The RBI has warned about potential misuse for illegal activities, wild price swings, and the risks they could pose to the nation’s financial stability.
RBI continues to advocate for a cautious approach, emphasizing the need to protect the financial system. While the upcoming discussion paper will mark a step toward regulatory clarity, the RBI’s stance suggests that any final policy will likely include strong safeguards.
Global Trends Put Pressure on India
India’s decision to draft the discussion paper comes amid growing international support for digital currencies. Notably, U.S. President Donald Trump’s public backing of crypto assets has helped shift global sentiment.
Sunil Mittal, Chairman of Bharti Group, pointed to the increasing pace of crypto activity in recent months. “Crypto, in the last six to ten weeks, has started to move at a pace not seen before, especially with the Trump administration supporting it,” Mittal said.
His comments underscore the need for India to act swiftly to avoid falling behind in shaping digital finance policy.
Government Says: Careful Steps, National Interest First
A senior Indian government official said that decisions on crypto regulation would be made carefully and with full consideration of India’s priorities. “India will take a call keeping in view its own national interest,” the official said. “No knee-jerk decision would be taken in view of the wide ramifications of this industry.”
Related: India’s Supreme Court Pressures Government to Regulate Crypto, Not Ban It
The discussion paper is expected to help the government weigh the benefits and risks before drafting any formal legislation. It will also serve as a platform for public and industry feedback.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
