India is in the final stages of preparing a detailed discussion paper that will lay the foundation for future policy decisions on crypto assets, sources told Business Today TV.

Sources aware of the development confirmed that the paper is almost ready and will be released shortly for public feedback. It will present regulatory options and explore global best practices, drawing significantly from the synthesis paper jointly developed by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).

“The discussion paper on virtual digital assets is being given finishing touches,” said a senior official involved in the process. “Once out, it will invite stakeholder inputs to help shape India’s broader regulatory approach to crypto.”

India’s approach to crypto remains measured. While the government introduced a 30% tax on gains from virtual digital assets in 2022, it has consistently maintained that taxation does not equate to legal recognition. Additionally, all crypto exchanges operating in the country are required to register with the Financial Intelligence Unit.

A top official reiterated that India will take a calibrated view based on its own national priorities. “No knee-jerk decisions will be made,” the official said, emphasising the complex implications of crypto on the economy.

India has already played a leading role in the global crypto dialogue. During its G20 Presidency, the country was instrumental in pushing forward a global regulatory road map. That road map, backed by finance ministers and central bank governors, rejected blanket bans and called for robust regulatory oversight instead.

The New Delhi G20 Leaders’ Declaration also endorsed the FSB’s recommendations on managing risks tied to crypto asset markets and stablecoins—solidifying India’s role as a thought leader in global digital finance governance.

Domestically, India’s stance has been marked by regulatory caution. In addition to the 30% tax, a 1% TDS on virtual digital asset transactions was imposed, and the Supreme Court’s 2020 reversal of the RBI’s 2018 banking ban on crypto marked a major turning point for the ecosystem.

In response to a Parliament query during the last monsoon session, Minister of State for Finance Pankaj Chaudhary stated that all jurisdictions, including India, are expected to assess their unique risks and characteristics before arriving at a regulatory framework.