India Abandons Plans for Separate Crypto Law Amid Regulatory Concerns
The Indian government has decided not to create a separate law for cryptocurrency regulation. Officials from the Finance Ministry expressed concerns that a formal rulebook could give people a false sense of security, thinking that crypto is safe or backed by the government.
Instead, the government wants to focus on developing its own digital currency, the e-Rupee. This move aims to provide a safer alternative for transactions and payments. Officials also plan to use the e-Rupee to send welfare payments to citizens.
The decision was shared with the Standing Committee on Finance. The ministry's Economic Affairs Division stated that regulating cryptocurrency is challenging due to its decentralized nature, making it difficult to track transactions through unregulated systems.