India to revisit crypto regulatory framework amid global shifts: DEA Secretary Ajay Seth

Department of Economic Affairs (DEA) Secretary Ajay Seth on Monday (February 3) said the government will revisit its cryptocurrency matrix in light of recent developments in the global scenario — holding back a discussion paper with significant input from the Reserve Bank of India (RBI).Speaking at a town hall organised by CNBC-TV18, “As we are aware… we have done a discussion paper on cryptocurrency, with senior level participation from the Reserve Bank of India.” However, before its release, a number of global jurisdictions changed their position on crypto assets, particularly in terms of their use in cross-border payments and stablecoin adoption, he said.Also Read: Ether tumbles 27%, Bitcoin down 6%, Dogecoin falls 23%: Trump’s tariffs shake crypto markets”The committee had finalised the discussion paper, but thereafter, we find that, when it was about to be issued, several jurisdictions, and you named one… but more than one jurisdictions… have changed their position on crypto assets in terms of their scope, where they see the utility, including for settlement, multilateral settlement, of payments, cross border payments,” Ajay Seth said.The paper, originally aimed at posing critical questions to stakeholders, is being reassessed in light of these global changes. The DEA secretary said the goal is to ensure the right questions are asked to develop informed policies that will help safeguard India’s financial system. With the evolving nature of cryptocurrency, which transcends national borders, India must be aware of international movements before formulating its policy.In 2023, during India’s G20 presidency, the regulatory positions of various countries were stable and predictable. However, the emergence of stablecoins and the growing conversation around their potential risks have added complexity to the regulatory discussions, he said. Stablecoins, once seen as relatively low risk, are now recognised as having significant implications for emerging economies, including India.Also Read: Budget 2025: How the govt plans to track crypto transactions better | ExplainedAdditionally, some jurisdictions are now exploring the use of cryptocurrencies for cross-border settlements, a development that has introduced a new element into the global crypto conversation. As a result, India is reconsidering its stance and moving to the final stages of its policy drafting, making necessary adjustments to reflect these global changes, he added.First Published: Feb 3, 2025 8:58 PM IST

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