India Delays Cryptocurrency Discussion Paper Amidst Competing Priorities and Upcoming Global Meetings

India hasn't released its discussion paper on cryptocurrency yet. It was expected to come out by September, but other priorities have taken over.

According to sources close to the situation, officials are focusing on more pressing matters right now. The discussion paper was supposed to outline India’s stance on cryptocurrencies after talks with key players like the central bank and market regulators. While they still plan to publish it, there's no set timeline yet.

As the fifth-largest economy in the world, India currently lacks comprehensive crypto legislation. This paper was seen as a crucial step toward that goal. Although the country claims that crypto is unregulated, it has imposed hefty taxes on the sector. Plus, crypto entities must register with the Financial Intelligence Unit (FIU-IND) to meet anti-money laundering (AML) and terrorism financing standards set by global organizations.

Indian officials are juggling several urgent tasks. They are preparing for the upcoming annual meetings of the International Monetary Fund (IMF) and the World Bank at the end of this month. On top of that, they are engaged in numerous discussions with other countries amid ongoing regional conflicts, including the wars in Ukraine and the Middle East.

Additionally, the Finance Ministry is focused on the election year, which includes two budgets: an interim one in February before the July elections and a full budget afterward. This also involves consultations across the country.

Even after a significant $234 million hack of the Indian cryptocurrency exchange WazirX, authorities don't see crypto legislation as an urgent issue like they did two years ago. This shift in perspective reflects the changing priorities in the country.