The Indian regulation could possibly legalize cryptocurrencies, but with tough terms and conditions attached, a news report suggests.
Be consistent to a New Indian Express article published Wednesday, an interdisciplinary committee set up by the government to investigate cryptocurrencies, is not in favor of an outright ban.
An anonymous superior official who attended the committee’s meetings told the newspaper:
“We have already had two meetings. There is a general consensus that cryptocurrency cannot be ignored as completely illegal. It needs to be legalized with strong riders. Deliberations are on.”
The government set up the committee in April 2017 with the subside of examining the existing legal framework related to digital currencies and suggesting new measures to deal with the technology, covering addressing issues around consumer protection and money laundering. Members include representatives from government departments for the brevity and taxation, as well as the central bank and other agencies.
The second iteration of the group is now reportedly expected to submit its new arrive to the country’s finance ministry by February 2019.
The article apparently indicates a softening of stance by the committee, which, back in October, recommended that the regime develop an “appropriate legal framework to ban the use of private cryptocurrencies in India.”
Further dampening the country’s cryptocurrency industry surrounded by confusing messages over the legal status of bitcoin and its crypto peers, an April order by the Reserve Bank of India, India’s median bank, prevented domestic banks from providing services to cryptocurrency firms such as exchanges.
Since then swaps have been seeking ways to keep their businesses from failing, entering legal petitions to invert the RBI ban at the country’s supreme court. Seeking guidance, the court, on Oct. 26, asked the government to provide its opinion on cryptocurrencies within two weeks.
While, no sanctioned announcement has yet been made to provide guidance, that situation looks likely to change in coming months.
With India a associate nation of the G20 group, any rules to govern the local crypto space may be influenced by planned regulatory guidance from the ecumenical economic forum, the report adds.
The official told the New Indian Express:
“We have also taken inputs from cryptocurrency barters and experts and will be examining legal issues with the law ministry. It’s a complicated issue. Once all aspects are decided, then we longing have more clarity.”
Bitcoin and Indian rupees image via Shutterstock