New Delhi [India], December 16 (ANI): The government on Monday informed Lok Sabha that there is no anticipated timeline for the introduction of comprehensive regulatory guidelines for the Virtual Digital Assets industry in India.
The government was asked by two members of Parliament whether it was taking steps to establish a comprehensive regulatory framework for the Virtual Digital Assets industry.
The members also sought details of the timeline anticipated for the introduction of regulatory guidelines.
The government in its reply noted that Virtual Digital Assets (VDAs) are by definition borderless and require international collaboration to prevent regulatory arbitrage. The Indian government does not register crypto exchanges and it maintains crypto assets, by definition, are borderless and require “international collaboration” to prevent regulatory arbitrage.
Therefore, India believes any comprehensive regulatory framework on VDA can be effective only with significant international collaboration.
Meanwhile, the government in March 2023 brought VDAs under the purview of the Prevention of Money Laundering Act, 2002 (PMLA) to bring the transactions involving VDAs within the ambit of it.
Further, the income from these virtual assets is also taxed.
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.
The synthesis paper provides a coordinated and comprehensive policy and regulatory framework for crypto assets, addressing the full range of risks, including those specific to emerging markets and developing economies (EMDEs).
“All jurisdictions, including India, are expected to evaluate their country-specific characteristics and risks, and engage with standard-setting bodies and the G20 to appropriately consider any necessary measures for crypto assets,” MoS Finance Pankaj Chaudhary today said in reply in Lok Sabha.
Further, the government said it has undertaken formal and informal consultation with stakeholders including industry and with relevant international organizations from time to time on policy formulation of crypto assets.
“There is, however, no timeline anticipated for introduction of comprehensive regulatory guidelines for VDA industry in India,” the government added. (ANI)