According to some reports, India’s government plans to end its stand on crypto legality in the first quarter 2013. Financial Action Task Force (FATF), compliance is required. “We will finalize our responses by February-March 2023. We have to respond to the FATF by May,” a government official said.
India Finalizing Crypto Stance
The Indian government is finalizing its stance on the legality of cryptocurrency in order to submit its response to the Financial Action Task Force (FATF) for the country’s “mutual evaluation” by early 2023, Business Today reported Monday.
“The Revenue Department has already sent their views and the Department of Economic Affairs has now been tasked to prepare a detailed response on India’s stance on the legality of cryptocurrency,” a government official was quoted as saying.
The FATF mutual evaluations are “in-depth country reports analyzing the implementation and effectiveness of measures to combat money laundering and terrorist financing,” its website details.
A government official also told the publication:
Since we already tax them, one of our questions is about the legality and legitimacy of cryptocurrency. Finalizing our responses is expected to be completed by February-March 2023. The FATF must be notified by May.
The Financial Stability Board’s (FSB) report will also be available in October. Outlook India reports Monday that it will assist the Indian government in deciding whether or not to prohibit cryptocurrency transactions.
An official quoted the following:
We await the (FSB), which is important for crypto legislation. It will also address how wallet transfers of crypto are handled.
“We will take a view on whether to ban wallet transfers depending on what the report suggests. Legislation is being developed. We made clear when we taxed it in Budget 2022 that the legislation was still being worked on. This report would help address the legislation aspect to a considerable extent,” the official additionally detailed.
India has not yet been FATF compliant with crypto assets. The global watchdog for money laundering and terrorist funding requires that countries have clear positions on legality in order to comply.
Recent meetings of the Financial Stability and Development Council were held by Nirmala Sitharaman, Indian finance minister. The meeting discussed issues relating crypto assets. It was stressed that there is a need to reach a consensus about the legality and safety of cryptocurrency.
Kristalina Georgieva (IMF managing director), met with the finance minister to discuss the recent meeting. She urged IMF leadership in the regulation of crypto assets.
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