India's Crypto & Web3 Bill Delayed for 18 Months, Senior Lawmaker Reveals

• India's Crypto Legislation Timeline Pushed Back
• Regulatory Balance
• Factors Affecting Crypto Legislation
• Evolving Use Cases and Global Standards
• India's Crypto Outlook
• India's Crypto Stance and Policy Decisions
• India's Crypto Caution
• Concerns Around Crypto
• Web3 Opportunities

India's Crypto Legislation Timeline Pushed Back

Recent statements from Jayant Sinha, Chair of the Standing Committee on Finance in India's Parliament and a Minister of Parliament from the ruling Bharatiya Janata Party (BJP), indicate that India may delay introducing any legislation specific to crypto or Web3 until at least the middle of 2025. The comments were made during a CoinDesk interview at India Blockchain Week in Bengaluru.

Regulatory Balance

Sinha emphasized the role of regulators and policymakers not only in fostering innovation but also in ensuring safety. He highlighted the need to strike a balance which he believes will continue to evolve over the next 12 to 18 months.

Factors Affecting Crypto Legislation

Evolving Use Cases and Global Standards

Three primary considerations have been highlighted as reasons for the delay in introducing a crypto-specific bill. These factors include the evolving use cases within the crypto space, the development of global standards in light of elections in India, U.S., and potentially U.K. in 2024, and the industry evolution following the collapse of FTX$3.28 -5.38% and regulatory action against Binance.

India's Crypto Outlook

Sinha mentioned his interest in first observing the powerful use cases that crypto will bring to India. He also expressed uncertainty regarding the development of global standards in 2024, given the numerous elections happening worldwide. Furthermore, the collapse of certain companies within the crypto industry is expected to provide insight into the future of the industry.

India's Crypto Stance and Policy Decisions

India's stance on crypto came under the spotlight in September 2023 when it urged the G20 to adopt global crypto guidelines without having its own legislation. Despite maintaining a crypto bill since 2021, it appears unlikely that a formal crypto bill will be introduced in 2024.

Instead, India seems set to rely on a series of policy decisions acting as a regulatory framework for the crypto space. These policies are expected to align with the Financial Stability Board's recommendations by the end of 2025. Among the earlier steps taken, India has already introduced anti-money laundering rules and a tax structure for crypto.

India's Crypto Caution

Concerns Around Crypto

Reflecting concerns raised by India's central bank, Sinha argued that the financial constraints in India, including capital controls, make it unfeasible to freely trade the rupee for crypto assets. He emphasized the need for extra caution when discussing crypto in the Indian context.

Web3 Opportunities

Sinha also recognized the potential of the underlying technologies that power Web3 and encouraged Web3 entrepreneurs, developers, and enthusiasts to propose a white paper or regulatory framework for consideration in India.

Edited by Jonathan Stoker