India’s government is presently drawing up a cryptocurrency regulation draft bill that is expected to be revealed in December.
According to documentation obtained by Tech News website Quartz India, a finance ministry which was set up in November 2017 is due to finalize the first draft for cryptocurrency regulations, something of which has been extremely contentious for the nation.
A short while ago, the Indian supreme court gave a deadline to the Indian government to produce finalized cryptocurrency policies. Yesterday, the supreme court heard the case of cryptocurrency exchanges who believe the central bank and government are disrupting the ecosystem, which has knock-on effects to domestic blockchain enterprises.
Headed by the secretary to the department of economic affairs, top civil servant Subhash Chandra Garg and the finance ministry panel are drafting the bill for cryptocurrency regulations. It is expected to be discussed further over the coming weeks.
According to the government’s counter-affidavit:
“…currently, 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. The draft report and bill will be circulated to members of IMC (inter-ministerial committee). Thereafter the next meeting of IMC will be held so that discussion can take place on the draft report and bill. It is expected that the draft report will be placed before the IMC by next month.”
In April 2018, cryptocurrencies became a tricky topic for India after the nation’s central bank, the Reserve Bank of India (RBI), released a press release that on the surface appeared to be an outright ban on cryptocurrencies in India.
As a result, the decision was petitioned heavily and relatively misunderstood; the press release did not call for the ban of cryptocurrencies precisely but instead was a policy decision made by the RBI, who were suggesting for all banks and regulated entities within its regulatory scope to not facilitate any transaction that entailed cryptocurrencies due to “associated risks”.
Additionally, numerous news articles revealing a potent blockchain workforce in India, as well as further comments from industry stars such as Tim Draper were hitting the headlines, furthering the case for crypto-clarification as domestic enterprises were expected to suffer.
Blockchain technologies have received a fair amount of praise from government officials, and a recent private sector transaction via the blockchain was completed, yet cryptocurrencies remained an ambivalent topic. While considered as risky, India has speculated the use of crypto tokens for financial transactions and public transportation.
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