Regulations

India may introduce strict crypto rules instead of a complete ban

The Indian cryptocurrency space has been in a limbo since the country’s central bank directed financial institutions to cut ties with crypto-affiliated companies. But this may change with the Indian financial and legal authorities providing strict crypto rules around digital currencies.

A senior official who attended meetings held by the 2nd interdisciplinary committee said that the committee has already held two meetings and:

“There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on. We will have more clarity soon.”

The official also indicated that the committee may have finalized a report on cryptocurrency by February next year. The report will then be presented to the country’s finance ministry.

The second interdisciplinary committee is being led by Subhash Chandra Gard, secretary, Department of Economic Affairs. The committee was formed to find a central ground regarding the various ‘conflicting opinions’ expressed during the hearing of the case challenging RBI’s ban.

In 2017, the Indian government formed the first inter-ministerial committee to look into cryptocurrencies in India. A few months later, instead of advocating for strong crypto rules, the committee recommended a complete ban on cryptocurrencies.

The second inter-ministerial committee which is made up of officials from the Reserve Bank of India (RBI) and the Ministry of Electronics and Information Technology (MEITY) among others, is likely to hold another meeting in the first few days of 2019 where they may settle for harsh crypto rules instead of a complete ban.

The anonymous official added that the committee has also engaged crypto exchanges and experts and that the next meeting will mainly dwell on legal issues before recommending whether or not strong crypto rules should be adopted.

Do you think timely crypto rules will help open India to more crypto-related innovations?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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