India’s Crypto Discussion Paper on Hold Due to Other Priorities

• India has yet to release a discussion paper on crypto, which was expected to be published by September.

• Other matters, like this month’s World Bank meetings, have taken priority over stakeholder consultations, which are crucial to framing India’s crypto policy stance.

India has yet to publish a discussion paper outlining its policy stance on cryptocurrencies because officials are concentrating on other priorities, according to two people familiar with the decision.

The document was initially expected by September following consultations with stakeholders including the central bank and the markets regulator. The intention to publish remains, but there is no timeline, said the people, who requested anonymity because the delay hasn’t been announced publicly.

Officials within India’s policy environment faced more pressing demands, including the 2024 annual meetings of the International Monetary Fund (IMF) and the World Bank at the end of this month. They have also had to deal with a number of multilateral and bilateral meetings with other nations as two regional wars – between Russia and Ukraine and between Israel and its enemies in the Middle East – persist.

Additionally, the Finance Ministry has had to concentrate on an election year with two budgets, an interim one in February before the July vote and a full budget afterward, together with resulting consultations across the country.

Despite a $234 million hack of Indian cryptocurrency exchange WazirX, the authorities do not consider crypto legislation a burning issue like it was two years ago, the people suggested.