Stock market today: S&P 500 rides Apple-led tech rally to close higher
India’s government is contemplating a change in its approach to cryptocurrency regulation, potentially influencing the rate of crypto adoption within the nation. Economic Affairs Secretary Ajay Seth conveyed to Reuters that India is reassessing its stance on cryptocurrencies, taking into account the evolving perspectives of other countries.
Seth remarked that several jurisdictions have altered their approaches to cryptocurrency usage and acceptance, highlighting the importance of crypto assets. This ongoing dialogue may result in further postponement of a discussion paper that is intended to define India’s official regulatory position on cryptocurrencies. The paper’s release, initially scheduled for September 2024, has already been delayed once.
The current stringent cryptocurrency regulations in India have already made a noticeable impact on the sector. Bybit, a significant cryptocurrency exchange, announced a temporary suspension of its services in India in January, citing recent regulatory actions and existing restrictions as the reasons for this decision.
Furthermore, in January 2024, the Indian government blocked the URLs of Binance, the world’s largest crypto exchange by volume, along with eight other cryptocurrency exchange websites. The ban was implemented due to non-compliance with local regulations. Despite this action, a report by the ESYA Center, an Indian think tank, found that the blockage had only a transient effect and did not align with the government’s intent to deter cryptocurrency market participation. Binance made a comeback in India in August after settling a penalty of $2.25 million.
Despite the challenges, India has achieved a notable position in the global cryptocurrency market. According to Chainalysis, a leading analytics firm, India ranked first in the global crypto adoption rankings in 2024, even with a substantial 30% tax on crypto capital gains.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.