The Indian crypto industry has welcomed the International Monetary Fund (IMF) and Financial Stability Board (FSB) synthesis paper, adopted by G20 Finance Ministers and Central Bank Governors at Marrakech in Morocco.
Players in the industry have praised the document’s progressive regulations and proactive approach to framing crypto-specific guidelines, which they see as a major boost to the sector in the country.
Rajagopal Menon, vice-president at WazirX crypto exchange company, commented: “This ensures that the crypto asset ecosystem operates within a well-defined regulatory framework, promoting stability and investor protection. It could happen as early as next year immediately after the general elections. Now that we have the roadmap, the expectation is that it will be implemented in the next 18 months.”
Kiran Mysore Vivekananda, chief public policy officer at CoinDCX exchange platform, urged the government to consult all industry stakeholders before finalising policy guidelines: “As a business, our only request is that government agencies and regulators must consult all stakeholders, including us, before finalising any rules and guidelines.”
The crypto industry in India has suffered due to the government’s past uncertainty and lack of clear regulations, which has caused a bear market, affected user base and forced many businesses to diversify and lay off staff.
The IMF-FSB synthesis paper outlines a policy framework implementation of crypto assets, outlining global coordination and cooperation, information sharing, data collection and analysis to address currency substitution.
As the roadmap gets implemented, crypto companies are expected to invest in compliance measures to adhere to regulations, such as adapting business processes, hiring compliance personnel and implementing software or systems for monitoring and reporting.
Overall, the Indian crypto industry looks forward to a more positive future with these new regulations.
