Almost a year has gone by after the first meeting for the recommendations for regulation of cryptocurrency. Still, there seems to be no specified timeline for final drafting of recommendations for cryptocurrency in India. The finance ministry panel, tasked with drafting the norms for virtual currencies, is headed by Subhash Chandra Garg, a top civil servant, currently the Secretary of Department of Economic Affairs.
A few questions were asked by Lok Sabha which was answered by Shri Pon Radhakrishnan, Minister of State in the Ministry of Finance. The questions were to be answered on December 28, 2018. One of the concerning questions included in the document was the expected timeline for the release of the regulation for the cryptocurrency. To which the answer reads, “In absence of a globally acceptable solution and the need to devise [a] technically feasible solution, the department is pursuing the matter with due caution. It is difficult to state a specific timeline to come up with clear recommendations.”
These questions have arisen after an anonymous source quoted that cryptocurrency like Bitcoin will be ban in India, but that could change, as the second interdisciplinary committee is in favor of legalizing cryptocurrency in India, but with stricter rules, as reported by The New Indian Express. Members of the second inter-ministerial committee include the revenue secretary and officials from SEBI, RBI and MEITY.
The question of legality for cryptocurrency in India is still under curtains as the government has not yet recognized it as legal tender. The issue of consenting cryptocurrency trading is under examination by the inter-ministerial committee. The minister also confirmed that the licensing and authorization of any entity or company to deal with bitcoin or other cryptocurrencies has not been made yet, as published on Bitcoin News. The committee is also studying the effects of introducing regulations for cryptocurrencies in India and how it can affect the economy,[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. ]