India is reevaluating its position on cryptocurrencies in response to evolving global perspectives, particularly recent crypto-friendly policies in the United States under President Donald Trump. This reassessment may postpone the release of a discussion paper on cryptocurrencies, initially scheduled for September 2024. Economic Affairs Secretary Ajay Seth emphasized that as multiple jurisdictions have altered their views on cryptocurrency usage and acceptance, India is revisiting its discussion paper to align with these global developments. He noted that due to the borderless nature of crypto assets, India's approach cannot be unilateral.

While Seth did not explicitly mention the United States, it's noteworthy that President Trump recently established a cryptocurrency working group tasked with proposing new digital asset regulations and exploring the creation of a national cryptocurrency reserve, fulfilling his commitment to revamp U.S. crypto policy. Despite India's stringent regulatory environment and high trading taxes, there has been a significant influx of investments into cryptocurrencies domestically. In December 2023, India's Financial Intelligence Unit issued show-cause notices to nine offshore cryptocurrency exchanges for non-compliance with local regulations. Binance, the world's largest crypto exchange, faced a fine of 188.2 million rupees ($2.25 million) in June 2024, a month after registering with the FIU to resume operations in India.

Previously, India's market regulator suggested that multiple authorities oversee cryptocurrency trading, indicating a potential openness to private virtual assets. This perspective contrasts with the Reserve Bank of India's stance, which views private digital currencies as a macroeconomic risk.