Bitcoin approaches $80,000 with slow advancements in crypto regulation in India
Even as Bitcoin reaches $80,000 each and generates significant interest for investment, India has yet to make notable progress in creating a regulatory framework for crypto. According to a report by Chainalysis, India leads the world in the global adoption index for crypto this year.
During their presidency last October, Finance Ministers and Central Bank Governors (FMCBGs) from G20 nations, under India’s leadership, adopted a roadmap for regulating crypto as suggested by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The roadmap does not support a complete ban on crypto-assets, but instead advocates for thorough regulatory and supervisory oversight as a preferable option.
As Brazil gears up to host the G20 leadership summit this month, attended by Prime Minister Narendra Modi, the focus will be on reviewing resolutions passed during the previous presidency. The G20 New Delhi Leaders’ Declaration endorsed the FSB’s recommendations for regulating, supervising, and overseeing crypto-assets activities and markets, as well as global stablecoin arrangements, urging consistent global implementation to avoid regulatory loopholes.
The issue of crypto regulation is critical now due to US President-elect Donald Trump’s backing of digital assets and the potential impact of pro-crypto lawmakers in Congress. Trump has vowed to position the US as a digital asset leader, advocating policies like accumulating Bitcoin reserves and appointing regulators for industry oversight.
In 2024, Bitcoin has surged by about 90%, driven by high demand for US exchange-traded funds (ETFs) and the Fed’s interest rate reductions, outperforming traditional investments like stocks and gold.
Trump’s supportive stance on crypto contrasts sharply with President Joe Biden’s administration, which has taken a more cautious approach to digital assets. The SEC, under Gary Gensler, appointed by Biden, has highlighted potential fraud and misconduct in the crypto sector.
India has maintained a strict position against cryptocurrencies since 2018, when the central bank prohibited financial institutions from dealing with crypto users or exchanges, a move later reversed by the Supreme Court. In 2021, a bill proposing a ban on private cryptocurrencies was drafted by the government but not yet introduced. As the previous president of the G20, India called for a global framework to regulate such assets, with the RBI remaining against any form of crypto.
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Published on November 11, 2024
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