Report – Regulation Bitcoin News

Report – Regulation Bitcoin News

The Indian government is reportedly planning to finalize its position on the legality of cryptocurrency by the first quarter of next year to become compliant with the Financial Action Task Force (FATF). “We will complete our responses by February-March 2023. We have to respond to the FATF by May,” a government official said.

India finalizes crypto stance

The Indian government is finalizing its position on the legality of cryptocurrency to submit its response to the Financial Action Task Force (FATF) on the country’s “mutual assessment” by early 2023, Business Today reported on Monday.

“The revenue department has already sent its views and the Ministry of Economic Affairs has now been tasked with preparing a detailed response to India’s position on the legality of cryptocurrency,” a government official said.

The FATF’s mutual evaluations are “in-depth country reports that analyze the implementation and effectiveness of measures to combat money laundering and terrorist financing,” its website details.

A government official further told the publication:

One of the questions we have to answer is about the legality of cryptocurrencies, because we have already started taxing them. We will finalize our responses by February-March 2023. We must respond to the FATF by May.

In addition, a report from the Financial Stability Board (FSB) is expected in October. It will help the Indian government decide whether to ban cryptocurrency transactions or provide a legal framework to engage in cryptocurrency trading in India, Outlook India reported on Monday, citing a senior government official.

An official was quoted as saying:

We are waiting for the report (FSB) which will be important from the perspective of crypto legislation. Also hopefully related to how to handle wallet (crypto) transfers.

“We will consider whether to ban wallet transfers depending on what the report suggests. The legal part is still being worked on. When we taxed it (in the 2022 budget), we made it clear that the legislation was still a work in progress. This report would significantly help in solving the legislative aspect”, the official further elaborated.

India is currently not FATF compliant on crypto assets as the global money laundering and terrorist financing watchdog requires countries to have a clear stance on the legality of crypto assets in order to be compliant.

India’s Finance Minister Nirmala Sitharaman recently chaired a meeting of the Financial Stability and Development Council (FSDC) to discuss issues related to crypto assets. The council emphasized the urgent need for a clear consensus on the legality of cryptocurrencies.

The Minister of Finance recently had a meeting with the Director General of the International Monetary Fund (IMF), Kristalina Georgijeva, where she invited the IMF to take the lead role in the regulation of crypto assets.

Do you think India will ban cryptocurrencies? Let us know in the comments section below.

Report – Regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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