India’s concrete crypto rules could arrive by mid-2025, government officials say

After India and other G2O nations decided to adopt a Crypto roadmap in light of suggestions from global financial bodies, one might have thought that the implementation of these laws was just around the corner. But is not so. A senior government official recently said that a Web3-specific cryptocurrency law in India is expected to arrive around mid-2025. This means it could take up to eighteen more months before India gets a final set of laws to which it Web3 companies can join.

The information was disclosed by Jayant Sinha during the India Blockchain Week held in Bangalore. As the chairman of the Standing Committee on Finance of the Indian Parliament, Shah is a lawmaker from the ruling Bharatiya Janata Party (BJP).

“Regulators and politicians are responsible, not only from the point of view of innovation, which we obviously want to encourage, but also from the safety side. We really need to find that balance and that balance will evolve over the next 12 to 18 months,” Coindesk cited Sinha as he says.

The parliament official said the government was taking calculated steps to engage Web3 because it is still curious to see the use cases of related technologies that could empower the nation.

“Global standards are still evolving and 2024 is an election year around the world. Many major countries, be it the US, the UK, India, are going to elections. So, I’m not sure that in 2024 the standards will be developed. We also need to see what will emerge from the (cryptocurrency) collapse and whether some of these companies will survive,” Sinha added.

This update from a government official comes a few days after India’s finance minister Nirmala Sitharaman provided soft updates on the prospects of Web3 in India.

In her update, Sitharaman She said that all countries that are part of the G20 group can customize laws according to the decided crypto roadmap and implement these rules which focus on the supervision and control of global stablecoin (GSC) agreements along with support for responsible fintech innovation.

“When we transition to the Brazilian presidency, given the momentum that the cryptocurrency issue has gained in the G20, if anything emerges, we will know at that time. At the moment, the content of the roadmap is what we need to act on,” the Finance Minister said.

Meanwhile, the government has educated all Web3 companies operating in the country must register with the Financial Intelligence Unit and report any suspicious crypto transactions detected to the authorities under the country’s anti-money laundering law. Cryptocurrency revenues are too taxed to 30% in India along with a 1% fee that is processed on every crypto transaction to maintain traces of these otherwise largely anonymous money transfers.

Despite the legal clarity on cryptocurrencies, India surmounted a list of 154 countries showing the fastest adoption of cryptocurrencies at the grassroots level. The report compiled by Chainalysis in September also listed Nigeria and Thailand among the nations showing rapid adoption of cryptocurrencies.

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