India will not be able to pass a specific crypto or Web3 legislative bill any time soon, and may not even do so until the middle of 2025. This is according to a senior politician in India who oversees India’s financial evolution.

Jayant Sinha was asked during a CoinDesk Interview at India Blockchain Week in Bengaluru by a member of the Bharatiya Janata Party, the ruling party in India, when India might see a Web3 specific bill.

Sinha stated that “Regulators, policymakers, and other stakeholders are responsible not only for the safety aspect, which we encourage, but also the innovation side.” “We need to find the balance, and this balance will evolve in the next 12-18 months.”


Crypto Bill Considerations

There are three reasons why a crypto-specific law is unlikely to be introduced into parliament anytime soon. These include the evolving nature of the use cases, the global standardization of the industry, given that 2024 will mark the elections in India, the U.S., and possibly the U.K. in addition to the reality of the changing industry after the collapse and regulation of Binance and FTX.

Sinha responded to a CoinDesk question about when India might see a Web3 bill.

“Second, global standards are still in flux and 2024 will be the year for elections all over the world. Elections are taking place in many important countries including the U.S.A., U.K. and India. So I am not sure how standards will evolve in 2024. “We also need to see how the (crypto-)meltdown will affect whether or not some of these businesses survive,” Sinha said.

India has kept a crypto bill in cold storage a href=”https://www.coindesk.com/policy/2021/12/23/indias-crypto-law-might not be ready before may sources say/” rel=”noopener” target=”_blank”>since 2021/a> but did indicate it will ‘decide its position in the coming months. India has been keeping a crypto-bill in cold storage , since 2021. However, it did say that it would determine its position within the next few months. Sinha’s comments suggest that this position will not be reflected in a bill until at least 2024.

officials in India have previously told CoinDesk that India will instead rely on a series of policy decisions to act as a regulatory framework and align with the Financial Stability Board recommendations by the end of 2025. An official told CoinDesk that India already has anti money laundering rules in place and a tax system for crypto. This may be sufficient, he said.


“Cautious with crypto”

Sinha reiterated the concerns raised by India’s central bank about crypto.

Sinha stated that it was not feasible to use crypto assets in India, where capital controls are enforced. “Unlike economies such as Singapore, Korea, or the US, which have freely traded currencies and can enter crypto with less fear, we cannot do that in India.” India has to be extremely, very careful when it comes to crypto. “But crypto friends, is only one application of what is a revolutionary technology that is at the core of Web3.”

Sinha encouraged the Web3 entrepreneurs, developers, and enthusiasts to submit a whitepaper or regulatory framework to India.

Read more: India’s controversial crypto tax should be cut after failing to achieve its goals, think tank urges

Parikshit Miishra is the editor.