India’s negative relationship with cryptocurrency may change this coming December, as the government plans to release the draft covering the regulation over the nascent industry. Currently, the Reserve Bank of India (RBI) had approved of a law that limits financial institutions in dealing with cryptocurrencies. The government had even declared that digital assets aren’t categorized as legal tender, they have yet to be outlawed entirely.
To begin regulating the industry, a finance ministry panel, comprised of India’s taxation, budget and economic affairs ministries as well as including central bank representatives, is evaluating how to separate blockchain and cryptocurrencies in terms of legality. The Indian government the RBI had expressed their inclination to adopt blockchain, yet have publicly condemned cryptos
India’s top court is presiding over a case filed by local cryptocurrency exchanges who are challenging the government authorities and the central bank ban
Subhash Chandra Garg, a secretary in the department of economic affairs, is heading the finance ministry panel, and will help to oversee the drafting of the regulations placed upon cryptocurrencies.
The agenda of the panel was clarified by the Narendra Modi government in a counter-affidavit, stating:
“…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.”