India’s Crypto Discussion Paper Delayed Due to Higher Priorities

India has yet to release its much-anticipated discussion paper on cryptocurrency, which was originally expected by September 2024. However, more pressing matters, such as the nation's budget and the upcoming World Bank annual meetings, have taken precedence over consultations necessary to finalize the document.

According to sources familiar with the situation, the delay is not publicly announced, but officials remain committed to publishing the paper. There is currently no confirmed timeline for its release.

The discussion paper was intended to clarify India’s stance on crypto, particularly since the country does not yet have comprehensive legislation on the matter. Although India has imposed heavy taxes on crypto and requires crypto entities to register with the Financial Intelligence Unit (FIU-IND) to meet global anti-money laundering (AML) standards, the sector remains largely unregulated.

India’s focus has shifted to immediate priorities, including the upcoming annual meetings of the International Monetary Fund (IMF) and the World Bank, as well as various multilateral and bilateral discussions with other nations. The ongoing regional conflicts in Ukraine and the Middle East have also drawn attention away from domestic policy concerns.

Additionally, with the nation heading into an election year, financial authorities are busy managing two budgets—an interim budget in February and a full budget after the July elections. These efforts have taken priority over crypto legislation, which is no longer considered an urgent issue, despite the $234 million hack of Indian cryptocurrency exchange WazirX earlier this year.