India signals no fixed timeline for crypto rules, calls for global alliance

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As a seasoned crypto investor with roots deeply entrenched in India’s bustling digital asset landscape, I find myself navigating the labyrinthine regulatory waters with both excitement and trepidation. The latest declaration from our esteemed government regarding the lack of a fixed timeline for comprehensive VDA regulations has left me somewhat perplexed.

In a recent announcement to Lok Sabha, the Indian government clarified that they haven’t established a specific deadline for releasing the complete regulatory framework for digital assets or virtual currencies.

The government’s reaction came after questions from two parliament members about the actions they are taking to establish a systematic regulatory system, as well as when this regulation might be implemented.

The administration emphasized that they consulted with various industry players and global organizations, both formally and informally, regarding the issue of Virtual Digital Assets (VDA). However, they stressed that it’s crucial for global policy actions on VDA to be implemented to prevent Regulatory Arbitrage to ANI. India aims to establish robust regulations for borderless crypto assets solely through strong international collaboration.

BREAKING: India’s Parliament Discusses Crypto Regulation: Thread

1/4: The Indian government is developing a comprehensive regulatory framework for Virtual Digital Assets (VDAs). They stress the importance of international cooperation to tackle the borderless nature of these assets and prevent regulatory loopholes.

— Crypto India (@CryptooIndia) December 16, 2024

Since taxation on Virtual Digital Asset (VDA) income is already in place and VDA transactions have been included under the Prevention of Money Laundering Act since March 2023, the government stated that due to their borderless nature, international cooperation is crucial to prevent regulatory loopholes. The implementation of the “G20 Roadmap on Crypto Assets” during India’s G20 Presidency has highlighted the necessity for global collaboration and urged all nations, particularly emerging economies, to create regulations that are sensitive to risk.

Nevertheless, India faces persistent hurdles as it strives to balance innovation, investor protection, economic growth, and financial stability. Since VDAs (Virtual Digital Assets) transcend geographical boundaries, a robust international collaboration is deemed necessary to bolster the investor protection framework that currently seems inadequate. A defined regulatory schedule would provide market participants with much-needed certainty, as policies evolve both in response to national interests and global shifts regarding digital asset regulation continue to develop.

These recent advancements underscore an increasing susceptibility within India’s rapidly evolving cryptocurrency market. Despite being a front-runner in domestic digital asset adoption, this surge in popularity has made India a prime target for numerous swindlers.

In simple terms, the Andhra Pradesh scam, one among several high-profile crypto frauds exposed this year in India, follows a pattern seen elsewhere in the country. This pattern involves enticing investors with promising monthly returns and connections claimed to well-known exchanges, leading unsuspecting individuals from diverse backgrounds into complex operations.

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2024-12-17 12:06