GoI announces the release of policy discussion paper on VDAs to seek comments and views from relevant stakeholders by September 2024
The Reserve Bank of India (RBI) releases a circular prohibiting banks from dealing in VDAs and providing services facilitating the buying and selling of VDAs.
G20’s New Delhi Declaration endorse the International Monetary Fund-Financial Stability Board high-level recommendations for the regulation, supervision and oversight of VDAs
PMLA registers Virtual Digital Asset Service Providers (VDA SPs) as “Reporting Entities” under Section 2(1)(sa). VDA SPs are also registered under FIU-IND
National Cybercrime reporting portal embraces VDAs in its reporting framework to create a channel for consumers to flag cyber fraud
Finance Bill amends the IT Act under Section 271C, which will also penalises non-payment of VDA TDS (tax deducted at source)
CERT-In issues directions under IT Act 2001 which govern and introduce compliance protocols for VDA Service Providers (VDA SPs)
The Government of India (GoI) brings VDAs under the purview of the Income Tax Act 1961, effective April 2022
Advertising Standards Council of India (ASCI) releases the ‘Guidelines for Advertising Virtual Digital Assets and Linked Services’
RBI clarifies that the previous circular is no longer valid and that customers cannot be cautioned against crypto-asset transactions.
Ministry of Corporate Affairs (MCA) issues a notification requiring new disclosures on VDAs by companies in their financial statements.
Supreme Court of India sets aside the RBI circular as a disproportionate restriction of trading platforms’ fundamental right to do business.
With the rising prominence of Web3, countries like Brazil, the UK, and Singapore have established regulatory frameworks to oversee the Web3 ecosystem. These frameworks primarily address the societal, environmental, and economic implications of this evolving technology. While numerous nations lack formal regulations for blockchain and Web3, an increasing number are actively adopting policies to govern this transformative sector.
Here are some prominent global regulations and licensing trends affecting Web3 domains today:
To support digital asset innovation and stablecoins framework
April 17, 2024
To improve data accessibility and promote a competitive cloud market in Europe
January 2024
To minimize financial stability risks and ensure investor protection
August 1, 2023
To support international standards around digital assets
July 26, 2023
To regulate virtual asset mechanisms
Published in December, 2022, but came into force on June 20, 2023
The G20, under India’s presidency in 2023, laid a comprehensive foundation for addressing the challenges and opportunities posed by cryptocurrencies and virtual digital assets (VDAs). Recognizing the need for global regulatory harmonization, the G20 endorsed a detailed roadmap for crypto-assets developed by the Financial Stability Board (FSB) and supported by the International Monetary Fund (IMF) and other global standard-setting bodies.
Key highlights of the roadmap include:
BWA is committed to G20’s goal of balancing innovation with regulation, creating an environment where cryptocurrencies can thrive responsibly while minimizing risks to the global financial system
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