Even as Bitcoin reaches $80,000 a piece, sparking renewed investment interest, India is yet to make significant progress in establishing a regulatory framework for cryptocurrency. According to a report by Chainalysis, India currently leads the world in the global crypto adoption index this year.

In October last year, Finance Ministers and Central Bank Governors (FMCBGs) of G20 nations under India’s Presidency had adopted the roadmap for crypto regulation as proposed by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The roadmap is not in favour of a blanket ban on crypto-assets, while it vouches for comprehensive regulatory and supervisory oversight as a better option. Later, the G20 New Delhi Leaders’ Declaration endorsed the FSB’s high-level recommendations for the regulation, supervision and oversight of crypto-asset activities and markets and of global stablecoin arrangements.

Now, the next presidency of G20 is near conclusion with Brazil to host a leadership summit later this month, which will also be attended by Prime Minister Narendra Modi. The summit is expected to take stock of resolutions adopted during the last presidency.

Meanwhile, on July 29 this year, Minister of State in the Finance Ministry, Pankaj Chaudhary, said in a written reply that all jurisdictions, including India, are accordingly expected to evaluate the country-specific characteristics and risks and engage with standard setting bodies and the G20 in order to reach an appropriate consideration of any necessary measures on crypto assets.  However, not much development has taken place.

Trump’s pro-crypto agenda

According to Himanshu Maradiya, Founder and Chairman, CIFDAQ, India was anticipated to release a discussion paper in September 2024 to clarify its policy stance on cryptocurrencies. However, this paper is still pending, despite a $234-million hack impacting one of India’s leading exchanges. The urgency of crypto regulation in India is underscored by the recent US election, where President-elect Donald Trump expressed strong support for digital assets and advocated for pro-crypto policies.

Given these developments, “there is a high likelihood that India will prioritise publishing its discussion paper within this calendar year. This would align with India’s G20 presidency objectives, which emphasise a coordinated and comprehensive regulatory framework to manage crypto-asset risks. With the recent US election outcomes, this regulatory push in India may accelerate further,” he said.

Edul Patel, CEO and Co-founder of Mudrex, feels Trump’s election win marks a turning point for crypto regulation, not only in the US, but worldwide. His campaign promises — like establishing the US as a crypto capital and positioning Bitcoin as a strategic reserve — are bold steps that could accelerate global regulatory shifts.

For India, “this momentum presents an opportunity to strengthen its role in crypto innovation. With India’s FIU already working on a consultation paper, Trump’s victory pushes India to speed up the regulatory process that supports growth and leverages the country’s tech talent to become a prominent player in the crypto space,” he said.

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