Finance Ministry To Receive Report
Going by the report which was published in the New Indian Express on Wednesday, a committee which was set up by the government is not in support of an outright ban on the sector. A senior official who took part in the meetings but did not want to be identified reportedly told the publication that there had been two meetings held thus far and in both meetings it was agreed that Cryptocurrency should not be completely dismissed as being illegal. The official said that in the deliberations the main opinion was to have Cryptocurrency legalized under strict regulations.
The interdisciplinary committee was set up by the government last year April with the main aim being to examine the current legal framework applying to digital currencies and making suggestions on new measures to be put in place when it comes to the technology. Some of the aspects that were to be closely examined were the issues concerning money laundering and consumer protection.
Members of the interdisciplinary committee include representatives of the central bank, the departments of the economy and taxation and other governmental agencies. This second meeting of the committee is expected to come up with a report that is to be submitted to the Ministry of Finance in February next month.
Supreme Court Awaiting Government Reply
The article reports that the committee may be taking a softer stance on virtual currencies than has been previously taken by the government. When the government banned Cryptocurrency in the country, the committee has recommended that an appropriate legal framework be developed to facilitate the banning of private digital currencies in the country.
As is being experienced in the country at the moment, the Crypto sector has been stifled by the ban put in the sector. Since then there have been confusing messages on what the legal status of the sector is. Earlier in the year, the country’s central bank, the Reserve bank of India, put out an order barring the domestic financial institutions from offering any financial services to Crypto based businesses.
Since the ban being put into effect, several Crypto based businesses have filed legal petitions in the Supreme Court against the ban. In seeking guidance on the ban the Supreme Court asked the government to give its opinion on the asset class, giving a period of two weeks within which it was to receive a reply. The government is yet to make any official announcement but this may be changing in the near future.
Crypto Community Views Taken Into Consideration
With India being a member of the G20 Group, the report stated that any regulations to be adopted for the country’s Crypto space would have to adhere to the regulatory guidance by the international economic forum. The official told the publication that the committee has also taken the views of the loca Crypto exchanges and experts into consideration and will be consulting the Ministry of Law on the legal implications.