India is reconsidering its approach to digital assets amid shifting perceptions in other countries, according to Economic Secretary Ajay Seth. The release of the cryptocurrency regulation draft, initially planned for September 2024, has been delayed again due to changing global stances on the asset class.

Seth explained that India’s stance on crypto cannot be one-sided as cryptocurrencies do not recognize borders. The official did not specifically mention the U.S., where President Trump signed an executive order creating a working group for digital asset markets.

In early 2021, India considered a cryptocurrency ban, even discussing criminal charges for owners. Later, there were indications that crypto could be legalized as an asset class. However, the government again hinted at banning most “private currencies” in November, causing a panic that led to a 15% drop in Bitcoin’s local price.

In 2022, India raised taxes on traders and investors, and the Reserve Bank’s governor, Shaktikanta Das, warned citizens against crypto investments. The Supreme Court reprimanded the cabinet in July 2023 for delays in developing cryptocurrency regulations.

In December 2023, India’s Financial Intelligence Unit accused nine crypto exchanges of operating without registration and violating anti-money laundering and counter-terrorism financing laws.