The economic impact of India's crypto legislation on the global market
Cryptocurrencies remain largely unregulated across the world. The G-20 Summit in 2023, where India presided as the President, emphasised establishing a collaborative and global network of regulations in cryptocurrencies which gathered steam from the attendees. This has been driven by India’s Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which is yet to be tabled but is becoming an era-appropriate necessity. Presently, cryptocurrencies are taxed at 30% on the earnings, while a further 1% is deducted from earnings. Meanwhile, the focus of the Crypto Bill is to establish a regulated structure in the domain that assists in the creation of official digital currencies.
GOI’s views on crypto
India has been one of the major advocates for establishing global crypto regulations, and similar sentiments were echoed at the G20 summit in 2023. The RBI has historically maintained a cautious approach regarding cryptocurrencies, however, has strategized the establishment of a countrywide blockchain ecosystem in December 2021. The central bank has also proposed crypto regulations through a report in 2023, where it emphasised prohibition, containment and regulations. It also advocated for a worldwide collaborative approach to achieve the same, a proposal that was tabled at the G20 summit.
