A senior Indian government official has revealed that a Financial Stability Board (FSB) report that is expected in October will help the government decide whether to ban crypto transactions through wallets or not.
The report will also provide a legal framework for dealing with crypto trade in India.
The anonymous official also said that the report will have guidelines on how the legal contours of India’s crypto trade will take shape.
The official said, “We are awaiting the (FSB) report which will be important from the crypto legislation perspective. We are also hoping it addresses how to deal with wallet transfers (of crypto).”
“We will take a view on whether to ban wallet transfers depending on what the report suggests. The legislation part is still being worked on. When we had taxed it (in Budget 2022), we had made it clear that legislation is still a work in progress. This report would help address the legislation aspect to a considerable extent”
The FSB is also studying the international precedents around crypto legislations. The report is also expected to guide India’s legal policy to deal with concerns surrounding money laundering and terror funding around crypto trade.
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The FSB is currently working on developing legislation for cross-border transactions in crypto. India is an active member of the FSB and has three seats in its Plenary, held by secretary economic affairs, deputy governor-Reserve Bank of India and chairman of Securities and Exchange Board of India.
