India Set to Unveil Cryptocurrency Regulations in December
There are reports that the Indian government is set to unveil a draft of regulations for the country’s cryptocurrency industry before the turn of the year. This report is coming amid the country’s reluctance to fully embrace the cryptocurrency sector.
According to a report by Quartz on Tuesday, a panel has been commissioned by the finance ministry of India to regulate the guidelines and norms for cryptocurrency trading in the country. In addition, its blockchain industry is prepared to reveal its planned draft next month.
This noteworthy news was revealed in a counter-affidavit filed by the ruling government of India in a Supreme Court case, which presently sees the cryptocurrency exchange sector in India challenging the ban imposed on them by the central bank early this year.
A part of the counter-affidavit filed by the government says: “Serious efforts are going on for preparation of the draft report and the draft bill on virtual currencies, use of distributed ledger technology in the financial system and framework for digital currency in India.”
Furthermore, the affidavit reveals that the draft report and bill will be handed over to the members of the ministry of finance’s inter-ministerial committee. That will then be followed by a meeting held by the committee to deliberate on the contents of the draft in December.
The inter-governmental committee, which was formed by the country’s finance ministry in early 2017, was tasked with examining global regulatory and legal frameworks for virtual currencies. The committee also has the mandate of “suggesting measures to propose a regulatory framework for cryptocurrencies usage and trading in India.” Apart from the finance ministry, the committee includes the ministries of economic affairs, budget, and taxation as well as representatives of the central bank.
The panel, which is chaired by the secretary of the Department of Economic Affairs, Subash Chandra Garg, will reveal its approach to regulation at a time when the government is mulling over placing a ban on private cryptocurrency usage in the country.
The current ban by the central bank, which barred banks from offering services to cryptocurrency exchanges, has adversely affected the growth of the sector in India.
The government of India is currently planning regulations, norms, and guidelines for the country’s cryptocurrency sector. A panel set up by the finance ministry for this purpose is expected to reveal its draft next month. This surprising news is coming at a time when India’s government is thinking of placing a ban on the usage of private cryptocurrencies in the country.
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