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Crypto industry players see light at end of tunnel despite regulatory vacuum. Here’s why | Stock Market News

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1 year ago

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Crypto industry players see light at end of tunnel despite regulatory vacuum. Here’s why | Stock Market News

The Ministry of Finance recently made it clear in a written reply in the Lok Sabha that the government is not considering a law to regulate the transaction of cryptocurrencies.

“Currently, there is no proposal to bring legislation for regulating the sales and purchase of virtual digital assets in the country,” Pankaj Chaudhary, Minister of State (MoS) in the Ministry of Finance, told the Lok Sabha via a written response.

It is interesting to note that this is not the first time that the government has been evasive about its commitment to establishing a regulatory framework for cryptocurrencies.

Union Finance and Corporate Affairs Minister Nirmala Sitharaman recently stated that there should be a global understanding on cryptocurrencies and merely rolling out regulations by one country was not going to make much headway into the space of regulations.

In November 2021, Sitharaman — in a reply to a question on bitcoin in Parliament — had said that the government has no proposal to recognise Bitcoin as a currency.

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What industry players think?

However, crypto industry participants are not too pessimistic about Chaudhary’s statement, which was released at the behest of the Finance Ministry since they pin hopes on a discussion paper on digital currencies likely to be released next month.

“The Department of Economic Affairs (DEA) secretary indicated just a few weeks ago that a discussion paper is likely to be released by September 2024. We remain optimistic and will look forward to this paper to better understand the potential next steps for the virtual and digital assets (VDA) sector in India,” says R Venkatesh, SVP and Head of Public Policy, CoinSwitch.

Likewise, Dilip Chenoy, Chairman of Bharat Web3 Association, also saw hope in the Department of Economic Affairs secretary’s recent comments about the upcoming discussion paper on VDA policy. “We look forward to studying the paper in detail when released for public consultation and offering our policy inputs. We applaud India’s leadership during the G20 Presidency last year in building consensus on crypto assets policy and adopting the G20 Roadmap on Crypto assets,” said Chenoy.

“We urge the government and regulators to take a lead in formulating a comprehensive regulatory regime for Web3/VDAs in India,” he added.

CoinDCX refused to comment on this development.

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It is interesting to note that the finance ministers of G20 nations in October 2023 adopted the synthesis paper released by the IMF-Financial Stability Board (FSB) the previous month.

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Crypto

Standard Chartered and Coinbase Expand Institutional Crypto Rails as Banking and Exchange Infrastructure Lock in

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7 hours ago

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December 15, 2025

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Standard Chartered and Coinbase Expand Institutional Crypto Rails as Banking and Exchange Infrastructure Lock in
Standard Chartered and Coinbase are pushing institutional crypto adoption forward by expanding a global digital asset partnership, signaling deeper integration between regulated banking infrastructure and crypto-native platforms as institutional demand accelerates.
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Crypto

UK Treasury to regulate cryptocurrency under new legislation

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19 hours ago

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December 14, 2025

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UK Treasury to regulate cryptocurrency under new legislation

The UK is set to introduce new legislation by 2027 that will bring cryptocurrencies, including Bitcoin, under a regulatory framework akin to traditional financial products.

The Treasury has unveiled plans for these new laws, which will mandate crypto firms to adhere to a specific set of standards and rules. These will be rigorously overseen by the Financial Conduct Authority (FCA).

This move comes amidst a broader push to reform the burgeoning crypto market, which has seen a surge in popularity as both an alternative investment and a method of payment.

Currently, unlike established financial instruments such as stocks and shares, the cryptocurrency sector lacks comparable regulation, potentially leaving consumers with reduced protection.

Chancellor Rachel Reeves said: “Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age.
Chancellor Rachel Reeves said: “Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age. (Ben Birchall/PA)

The Government said the new rules, coming into force in 2027, will make the industry more transparent and make it easier to detect suspicious activity, impose sanctions or hold firms to account over their activity.

Chancellor Rachel Reeves said: “Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age.

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“By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high-skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.”

Crypto firms, which can include crypto exchanges and digital wallets, currently have to register with the FCA if they provide services that fall within the scope of money laundering regulations.

The changes will bring firms that provide crypto services into the remit of the FCA with the intention of supporting legitimate businesses.

City minister Lucy Rigby said: “We want the UK to be at the top of the list for cryptoassets firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term.”

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Crypto

SEC Sets Bullish Tone on On-Chain Markets as Blockchain Settlement Becomes Strategic Priority

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1 day ago

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December 14, 2025

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SEC Sets Bullish Tone on On-Chain Markets as Blockchain Settlement Becomes Strategic Priority
The SEC is signaling a decisive push to move U.S. financial markets onto blockchain infrastructure, framing on-chain settlement as a priority upgrade that could reshape post-trade systems and regulatory strategy under Chair Paul Atkins.
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