India’s cryptocurrency regulations have been in debates and discussions for a long time now, but there has been no conclusive move from the government. From October 2021, there were rumors of passing a Cryptocurrency Bill in the winter session of the parliament. However, the winter session of the parliament failed to make any substantial decision, be it with respect to cryptocurrency or not. The parliament unanimously deferred the passing of a cryptocurrency bill, adding to the woes of the investors and Indian cryptocurrency exchanges. Now the Indian crypto community wants some clarification on cryptocurrency investments and regulations in the upcoming Union Budget. Nirmala Sitharaman, the finance minister of India, is scheduled to deliver the Union Budget in March 2021. However, it is still unclear whether her budget will address cryptocurrency issues in the country.
Indiatech, an industry association from India, has recently sent a letter to the finance minister demanding clarification on cryptocurrency regulations in the country. It has representatives from the top Indian crypto exchanges like Conswitch Kuber, WazirX, and CoinDCX. According to the letter, there should be coherent and consistent laws for cryptocurrencies in India, including a decision on which asset class they fall into. In the past, there have been rumors of India banning cryptocurrencies and working on an official CBDC exclusively. However, a ban seems unlikely given the approach of the government towards cryptocurrency. Under growing pressure, Indian investors can expect some clear guidelines on cryptocurrency transactions in the country in the upcoming Union Budget.