A lot of consultation has taken place between both domestic and external participants.
India remains the fastest-growing large economy in the world despite the challenging environment.
India’s Economic Affairs Secretary Ajay Seth told reporters on Monday, May 30 that inflation in India is anticipated to drop in the next few months. Additionally, the government is ready to release its consultation paper on cryptocurrency.
Seth also added that there needs to be a global agreement on cryptocurrencies. India will look at how other countries regulate cryptocurrencies before deciding how it will do so.
The crypto consultation paper almost ready, says Ajay Seth, Secretary, DEA, @FinMinIndia. Also states that India looking at “global paradigm“ on digital asset pic.twitter.com/sxGwV4Mben
— CNBC-TV18 (@CNBCTV18News) May 30, 2022
A lot of consultation has taken place between both domestic and external participants, Seth noted on the sidelines of a Finance Ministry event. In addition, he said that a global response is necessary to deal with crypto’s challenges.
Consultation paper is fairly ready. We have gone through (a) deep dive, consulted not just domestic stakeholders but also organizations like the International Monetary Fund (IMF), World Bank. We hope we’ll soon be in a position to finalize the consultation paper.
On the economic side, Seth said despite the challenging environment, India would remain the fastest-growing large economy in the world.
Presently, cryptocurrency earnings in India are taxed at a 30% rate but have not yet been given legal status. A tax deduction will begin in July as a result of a 1% tax deducted at source (TDS).
Notably, just a few weeks back, the Reserve Bank of India (RBI) warned its citizens against the use of cryptocurrencies after the Terra (LUNA) and the stablecoin TerraUSD (UST) fell. It warned that crypto could impact the country’s financial stability.