India's Crypto Consultation Paper Is Almost Ready: Economic Affairs Secretary

India, the country with the highest number of internet users, might be soon implementing its own set of crypto regulations as the consultation paper on cryptocurrency is almost ready.

According to a report from Reuters, the world's biggest democracy will look at the crypto regulations implemented by other nations before imposing its own set of guidelines. Economic Affairs Secretary Ajay Seth told reporters on the sidelines of an event Monday that there is a need for a united global approach to crypto regulation.

Although India implemented a 30% crypto tax earlier this year following the introduction of the annual budget, cryptocurrencies are still donot have legal status in the country. The Goods and Service Tax (GST) Council is currently reviewing a proposal to introduce a 28% GST on cryptocurrencies as well.

"The proposal is to levy 28% GST on services and all activities related to cryptocurrencies soon. The law committee's view will be tabled before the fitment committee, and it is then for the fitment committee to suggest a rate, which is likely to be 28%, and post this, the proposal will be taken to the GST Council for a formal nod," CNBC reported quoting sources.

The Reserve Bank of India (RBI) talked about launching the Indian central bank digital currency (CBDC) in its Annual Report on the Working of the Reserve Bank of India 2022 and will follow a “graded approach" for the same.

"Accordingly, the appropriate design elements of CBDCs that could be implemented with little, or no disruption are under examination," the report said.

The central bank has also set up the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the Reserve Bank headquartered in Bengaluru.