Cryptocurrency, Featured

Indian Govt Panel Recommends New Legal Framework For Cryptocurrency Regulation

The Indian government had appointed a panel to draft a set of standards for cryptocurrency regulation has now come up with a recommendation suggesting a new legal framework for cryptocurrencies. The panel was headed by Subhash Chandra Garg, the country’s Economic Affairs Secretary.

The contents of the reports have not been made public and no official announcement has come out, so there are only speculations and assumptions doing rounds in the crypto corridors. The new framework needs to bring positive regulation for the crypto industry in India and to bring the same, the CEO of WazirX Nischal Shetty is running a Twitter campaign to urge the government to consider this side of the coin as well.

This was the first meeting for the Garg panel to present the draft and the next meeting will be held in January 2019. The panel discussion will concentrate on deliberating the draft report and the provisions of the draft bill on digital currencies, as the government’s counter-affidavit stated.

In March 2017, the government had selected a task force to suggest a framework for cryptocurrency regulation, which was headed by a top bureaucrat serving as the special secretary for economic affairs, as mentioned on Quartz India.

Several announcements prior to this have been mistaken by some as cryptocurrencies being banned or made illegal. Like, during February budget speech, finance minister stated that the Indian government does not recognize cryptocurrencies as legal tender, and it was subsequently misinterpreted as cryptocurrencies are illegal, as reported on Bitcoin News.

The ban by RBI on the banks to seize trade with crypto entities was also mistaken by some as a general ban on crypto. The recommendations for cryptocurrency regulation may take time and they always don’t get immediately converted into law. “Even if the government plans to ban possession of cryptocurrency, it will be impossible to implement it,” Nischal Shetty said. The ban can rightfully be imposed on the known exchanges but it can become difficult to keep track of hyperlocal exchanges and block them.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Aabha Singh finds time from her hectic editorial schedule to write finance articles.

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