India's cryptocurrency regulations have been postponed until 2025

India awaits clear global regulations on cryptocurrencies and web3.

India is taking a cautious approach to cryptocurrency and Web3 legislation, with Indian MP Jayant Sinha saying that the country is unlikely to introduce a legislative bill on cryptocurrencies or Web3 anytime soon, perhaps until mid-2025.

First, Sinha noted that use cases for cryptocurrencies and Web3 applications are evolving locally. More time is needed to identify the most impactful applications for the Indian economy and financial system.

“Regulators and policymakers have a responsibility not only in terms of innovation (and we certainly want to encourage it), but also in terms of security,” Indian lawmakers said. We have to really find that balance, and that balance will continue to evolve over the next 12 to 18 months. ”

Sinha also said that global regulatory standards around these technologies are still being developed. With major countries such as the United States and the United Kingdom set to hold elections in 2024, it will take at least another 18 months for international norms to become clearer.

Sinha said India will rely on a series of narrow policy decisions to act as a de facto regulatory framework, rather than legislation, that is in line with the upcoming G20 recommendations. The rules that have been put in place require cryptocurrency exchanges to implement anti-money laundering checks and tax investments. For now, these piecemeal steps may be sufficient.

Sinha echoed the RBI’s concerns about cryptocurrencies, especially given India’s capital controls and the non-freely tradable nature of the rupee. He stressed the need for caution when dealing with cryptocurrencies in India and acknowledged the revolutionary potential of Web3’s underlying technology.