India’s finance minister has received Cryptocurrency recommendations from the panel that was appointed by the government to carry out the task. The new move is an indicator that the country is about to have the much-awaited Crypto legal framework. However, given the report was shared by anonymous sources, industry participants are waiting for the official announcement to be sure of the fate of Crypto sector in the country.
On Friday, CNBC Tv18 reported that the government had received a report from the panel appointed to draft standards for Cryptocurrencies in the country. The news outlet quoted an anonymous source saying that speculation on the virtual currencies in the country will end as the panel recommended the creation of a legal framework to regulate the sector.
A Sovereign Backed Crypto
According to the sources, the panel also suggested the creation of a state-backed Cryptocurrency. CNBC Tv18 reported that such a coin could only be developed in the future. India’s Economic Affairs Secretary Subhash Chandra Garg is the head of this panel. In November, Quartz India wrote that according to the counter-affidavit filed by the government with the Supreme Court, the panel would give Cryptocurrency regulation recommendations in December.
Crypto Players Are Waiting For The Official Statement
CNBC Tv18 only relied on an anonymous source while releasing the report by the panel. Given that report by the panel has not been officially given, at this point, there is only speculation. Wazirx Cryptocurrency exchange CEO Nischal Shetty said that the report on the news outlet should be treated with caution. He added that such stuff in the news is common and it is not until an official statement is released that one should jump into conclusion. Shetty has been active on Twitter urging the government to allow the sector to operate through proper regulations.
The government has made various announcements about Cryptocurrencies that have been interpreted differently. It has been unclear whether the government meant banning the Cryptos or making them illegal. In February, for instance, the finance minister said the government does not recognize virtual currencies as legal tender. Some media outlets reported that the government had said that Cryptocurrencies are illegal. However, according to Sathvik Vishwanath, Unocoin exchange CEO there is a huge difference between what the minister said and what some media houses reported.
Challenges In Implementing Recommendations
According to Coin Crunch India publication founder Naimish Sanghvi, it is not easy to implement recommendations (like those by Garg’s panel) as they are not law. He noted that any changes to the Coinage Act would require parliament approval. Such a process is lengthy, as a majority of the parliamentarians must support the changes. Therefore, regardless of whether CNBC Tv18’s reports are true, the Indian Crypto community will have to wait for some time.
In November, Shetty told Quartz that even if the government was to ban Cryptocurrencies, implementation would be a challenge. He noted that although banning big exchanges is possible, dealing with the small ones would be a big challenge. Furthermore, in the absence of the large exchanges, there could be a possibility of new ones emerging making it difficult for the government to track and block them.