Cardano (ada) 
India’s Regulatory Framework for Virtual Assets Remains Uncertain
Government Response to Lok Sabha Queries
The Indian government recently addressed queries from Members of Parliament regarding the establishment of a structured regulatory framework for virtual assets, stating that there is no fixed timeline for the rollout of comprehensive guidelines.
International Cooperation Needed
The administration emphasized the need for global cooperation to prevent regulatory arbitrage, citing the borderless nature of crypto assets. This stance aligns with India’s efforts during its G20 Presidency, which highlighted the importance of collaborative action at the global level.
Virtual Digital Assets (VDAs) have been subject to taxation since the introduction of relevant income tax regulations, and transactions have been brought under the Prevention of Money Laundering Act since March 2023. However, the government acknowledges that effective regulation can only be achieved through deep international cooperation.
Challenges in Balancing Innovation and Investor Protection
As India navigates the path of innovation and investor protection, challenges persist. The lack of robust international cooperation is seen as a significant vulnerability in the country’s crypto sector. A clear regulatory timeline would provide market participants with much-needed clarity, but policies continue to evolve in response to shifting global consensus and national interests.
Crypto-Related Frauds on the Rise
India’s rapidly growing crypto sector has also made it a prime target for fraudsters. Recent high-profile scams, such as the Andhra Pradesh scam, have highlighted the need for effective regulation and investor protection. These scams often involve promises of appealing monthly returns and affiliate programs with reputable exchanges, which can be particularly enticing to unsuspecting investors.
Some key points to consider when investing in cryptocurrencies in India include:
- Understand the risks and potential returns associated with investing in cryptocurrencies.
- Be cautious of scams and fraudulent schemes that promise unusually high returns.
- Stay informed about regulatory developments and updates in the Indian crypto sector.
- Consider diversifying your investment portfolio to minimize risk.
“The adoption of the G20 Roadmap on Crypto Assets during India’s G20 Presidency brought forth the pressing need for collaborative action at the global level.”
For more news and updates on the world of cryptocurrencies and finance, visit Global Crypto News.
