India is unlikely to bring forth a specific law addressing cryptocurrencies or Web3 technologies until approximately mid-2025.
Jayant Sinha, who leads the Standing Committee on Finance in India’s Parliament and is a Member of Parliament from the ruling Bharatiya Janata Party (BJP), revealed this information in an interview at India Blockchain Week in Bengaluru.
Sinha highlighted the importance of regulators and policymakers finding a middle ground between encouraging innovation and ensuring safety. He mentioned that this balance is expected to evolve over the next 12 to 18 months.
There are three key reasons why it’s unlikely for a crypto-focused bill to be presented in parliament shortly. Firstly, the changing ways in which cryptocurrencies are being used pose a challenge. “I want to first see the use cases that will really be powerful for India and that’s point one,” said Sinha.
Secondly, with the 2024 elections approaching in India, the U.S., and possibly the U.K., there’s a need to consider the evolving global standards in the crypto space.
Lastly, recent events like the collapse of FTX and regulatory actions against Binance are shaping the industry’s landscape, making it prudent to wait and assess the emerging realities before introducing any legislation.