No Proposal to regulate Sales and Purchase of Crypto; Says MOS

The Minister of State in the Ministry of Finance Shri. Pankaj Chaudhary has stated in response to a question raised in Lok Sabha that No proposal to regulate the sales and purchase of Crypto.

The Minister Shri G M Harish Balayogi asked the question in Lok Sabha:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government has conducted any research/study/initiative into the present status of Virtual Digital Assets in circulation at present in the country;

(b) if so, the details thereof along with the total valuation of Virtual Digital Assets held by Indian citizens;

(c) the details and the total number of corporations, entities and/or exchange platforms recognized to be working with Virtual Digital Assets in any form/capacity over the last five years;

(d) whether the Government has any proposal to bring legislation for regulating the sale and purchase of virtual digital assets in the country, if so, the details thereof and if not, the reasons therefor; and

(e) whether the Government considered setting up an oversight mechanism/authority to regulate virtual digital assets in the country and if so, the details thereof?

The Minister of State in the Ministry of Finance Shri. Pankaj Chaudhary replied:

(a) to (c): Crypto assets or Virtual Digital Assets (VDAs) are unregulated in India and the government does not collect data on these assets.

(d) & (e): Currently, there is no proposal to bring legislation for regulating the sales and purchase of virtual digital assets in the country. However, for specific oversight purposes such as Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT), the Financial Intelligence Unit India (FIU-IND) has been authorized to designate Virtual Digital Asset Service Providers (VDSAPs) as Reporting Entities (RE) under the Prevention of Money Laundering Act, 2002 (PMLA). Additionally, Law Enforcement Agencies (LEAs) have the mandate to address illicit activities under existing legal provisions.

Further, during India’s Presidency of the G20 last year, the International Monetary Fund (IMF) and Financial Stability Board (FSB) Synthesis Paper, along with the ‘G20 Roadmap on Crypto Assets,’ was adopted. This Synthesis Paper presents a unified and comprehensive policy and regulatory framework for crypto assets, covering all risks, including those unique to emerging markets and developing economies (EMDEs). All jurisdictions, including India, are expected to assess their country-specific characteristics and risks before engaging with standard-setting bodies and the G20 to adopt any necessary steps for crypto assets.