Is India Close to Taking a Stand on Cryptocurrency?

- Advertisement -

Is India Close to Taking a Stand on Cryptocurrency?

After years of uncertainty and ambiguity, government leaders in India may at last be close to formalizing domestic cryptocurrency laws. The inter-ministerial committee set up to investigate and draft regulations for digital currencies is in the “finalization stage.” So what comes next?

Also read: Samsung to Introduce a Crypto Wallet in S10–Rumour or Reality

Subscribe to the  YouTube channel for great videos featuring industry insiders & experts

A Hint of Cryptocurrency Regulation in India

The Department of Economic Affairs, a government agency that formulates and monitors India’s economic policies, confirmed last week that the nation’s inter-ministerial committee on digital currencies is almost ready to put forth cryptocurrency laws in India.

However, the draft policies suggested by the committee have not yet been made public and all participating government agencies have remained tight-lipped on the matter to date.

The confirmation came in response to a Right to Information (RTI) application filed by local crypto-focused news portal Coin Crunch India in late 2018. The appeal aimed to sort out fact from fiction over developing cryptocurrency legislation in the nation.

- Advertisement -
Is India Close to Taking a Stand on Cryptocurrency?
Which way will the crypto winds break in India? Only time will tell, but an answer could be coming sooner rather than later.

In particular, the RTI application requested information on two main points: firstly on whether the inter-ministerial committee had yet submitted a report  and secondly whether the report suggested an outright ban on bitcoin.

“The report of the Committee is in the finalization stage, hence, prohibited under section 8(3) of RTI Act, 2005,” an official with the Department of Economic Affairs noted in an official written response to the RTI. 

Although brief, the response revealed the report is in its final phase and thus possibly close to public disclosure. However, a fixed timeline for any future related announcements wasn’t provided, and the reply could be subtle diplomatic maneuvering as policymakers continue the task at hand with no definite end in sight.    

- Advertisement -

A Lot of Moving Parts

So, once more for Indian cryptocurrency aficionados, it’s not clear what comes next.

“We have already had two meetings — there is a general consensus that cryptocurrency cannot be dismissed as completely illegal,” a source close to the committee reportedly told domestic outlet New Indian Express last year. 

“It needs to be legalized with strong riders. Deliberations are on.”

As for the committee in question, it consists of members from the nation’s Ministry of Finance, the Reserve Bank of India, the Ministry of Electronics and Information Technology, the National Institution for Transforming India, and the Ministry of Home Affairs. The body is directed by Subhash Chandra Garg, current Economic Affairs Secretary of India. 

“The current crypto verdict is on the top of the list of the Supreme Court to be heard on February 26th,” Dwaipayan Bhowmick, an advocate who had filed a petition in court demanding the government’s stand on cryptocurrency, said in speaking to .

Furthermore, independent enterprises and groups have offered their own cryptocurrency recommendations to the nation’s powers that be. International law firm Nishith Desai Associates was one of these private entities, who has gone on the record in favor of legalizing India’s cryptoeconomy.

The law firm asserted that the risks and concerns of cryptocurrencies will fade away against its benefits in the long run. The firm also said that instead of banning cryptocurrencies, the government should rather bring them under the regulatory fold.  

In that sense, the law firm proposed a multifaceted approach by regulating digital currencies as security tokens, utility tokens, and payment tokens, much like the United Kingdom’s Financial Conduct Authority is approaching these assets.

Will the cryptocurrency scene in India soon have formal rules to go by? Would that be a good or bad thing? Share your views in the comments section.


Images via Pixabay

Previous Articles:

- Advertisement -

Latest News

Solo Bitcoin Miner Strikes Block, Earns $373K Amid Rising Difficulty

A solo Bitcoin miner earned $372,773 by mining block 907283 on Saturday.The block contained...

Coinbase Base App Rebrand Sparks Zora Token and SocialFi Surge

Coinbase rebranded its Wallet to the Base App on July 16, sparking a surge...

Solana Holds $177 Support as ETF Delays Weigh, Eyes $205 Rebound

Solana (SOL) saw its price fall by 3.2% this week after a strong rise...

Astronomer Turns Viral CEO Kiss Cam Scandal Into Data-Driven Win

Astronomer, a data infrastructure company, faced a viral public incident involving its CEO and...

Japan’s Crypto Bottleneck: Regulation, Not Taxes, Drives Talent Out

Regulatory approval delays are causing crypto startups to leave Japan.A proposed 20% flat tax...

Must Read

What Is the Dencun Upgrade for Ethereum?

The Dencun Upgrade for Ethereum is poised to revolutionize the blockchain landscape, offering improved scalability, efficiency, and groundbreaking features. Set to launch at the...