India is expected to drop a major discussion paper on crypto regulations in June. For a country that has been interrupted between hard-line tax moves and regulatory silence, this appears to be a major change. It is also a great signal that governments are getting warmer in the sector as the industry prints its highest ever high (ATH).
US President Donald Trump’s bold procrypt stance and ongoing tariff disputes have made the global digital asset market print green indexes. Bitcoin, the biggest crypto, destroyed a new ATH of over $111,900 on May 22nd, returning to the $100,000 level.
India will announce its crypto plan soon
According to the report, the paper that is due to be released by India will be drawn heavily from the International Monetary Fund (IMF) and the Financial Stability Committee (FSB) Integrated Report. It may open the door for public opinion on how a country should treat practices adopted by other jurisdictions.
India’s view on Crypto was in Gray Zone. The fiscal year 23 budget imposed a strict 30% tax on crypto profits, which prevented the sector from being legally aware. The regulator has since been forced to register with the exchange with the Indian Financial Information Unit. Meanwhile, the Reserve Bank of India has repeatedly flagged risks such as money laundering and terrorist financing, promoting its own CBDC as a safer option.
The report said a senior government official said India would make a crypto decision based on national interests and avoid a “knee” response, taking into account the significant meaning of the sector.
Previously, the Supreme Court of India condemned the central government for its long silence over crypto regulations. It warned that this legal vacuum had turned into a breeding ground for misuse. The courts grill the government as the largest global economy advances its regulatory framework, and India has yet to introduce clear rules.
A new report from Think Tank Esya Center estimates that almost 90% of India’s crypto transactions have shifted offshore as a direct result of these regulations. It erodes India’s foothold in the rapidly expanding global crypto economy. Industry leaders warn that current tax systems are silenced and users are heading towards unregulated markets.
India’s Supreme Court requires cryptographic rules
The US is making some major reforms for the crypto community. The encrypted vocals of skeptical voices under Biden have urged Trump’s administration to forgive several digital asset industry leaders, launch strategic Bitcoin reserves and pass custody laws.
Recently, Trump’s Senate passed the Stubcoin Act. Meanwhile, the EU’s MICA regulations are already being rolled out in real time. Against this backdrop, the Indian Supreme Court said it is no longer acceptable to continue to dodge the issue. The bench led by Surya Kant and N Kotiswar Singh stressed that banning Crypto is not the answer, but that regulations are urgently needed.
Cumulative crypto market capitalization recorded a decline of more than 3% on Friday morning to $3.31 trillion. The 24-hour trading volume was $142.3 billion. After a short rally, Bitcoin prices have dropped by 5% over the past seven days. One of the biggest winners of the year, Ripple’s XRP price fell 10% over the same period.
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