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India Crypto Regulations: A Look at Upcoming Framework

India is actively working on developing a regulatory framework for virtual digital assets (VDAs), or cryptocurrencies, to address their growing popularity and potential impact on the financial system. The government aims to balance innovation, investor protection, and economic stability while advocating for international collaboration to prevent regulatory arbitrage. VDAs have been placed under the Prevention of Money Laundering Act and are subject to taxation. India has also been leading efforts at the G20 Summit to establish a global consensus on crypto regulation, emphasizing financial stability and investor protection. The government is engaging with stakeholders to gather insights and is expected to release a discussion paper on its regulatory stance soon.

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