Key Takeaways: 



Indian authorities want to have a broad framework in regards to digital assets.  Two drafts are being prepared for the same. 



Debates related to cryptocurrency are ongoing in India. The virtual assets are yet to gain legal status in the country. This April the government levied a 30% tax on crypto gains. An extra 28% of taxes may also be imposed to give it a similar status to betting. 



Reportedly, on Monday, the Secretary of Economic Affairs, Ajay Seth stated that the authorities have prepared a consultation paper on digital currencies. His statements revealed that India is doing in-depth research before deciding its take on cryptocurrency. Two consultation papers are in process, of which one is “fairly ready”. The authorities have consulted native institutional stakeholders, the World Bank, and even the International Monetary Fund, before finalizing the first paper. 




Economic Affairs Secretary Ajay Seth says consultation paper on #cryptocurrencies has been finalised and it will be submitted soon. A lot of consultation has been done from both domestic & other participants. A global response is needed to deal with challenges posed by #crypto . — Siraj Noorani (@sirajnoorani) May 30, 2022




The second draft deals with digital assets and the authorities want all economies to be on the same page. They want to broaden their framework before reaching a final decision. India is looking out for a ‘global paradigm’ and agrees with other countries and the IMF. 



He started, “Whatever it takes, it’s a dynamic situation. We are not looking at a static situation and then giving a peaceful solution. As the situation evolves, it’s continuously evaluated. Whatever it takes, is done subject to overall constraints.” 



The Secretary has also opined that global consensus is required in this matter. “For any country, if there’s global consensus around the regulations, then again there has to be a broad framework of participation of countries,” he further stated.