Cryptocurrency regulations to be finalised in July by the Indian government
Cryptocurrency domain in India is about to receive its regulatory framework this July by the Indian authorities. The proposals framed by the committee head of the Government of India are in a stage of getting finalised into a draft. Previously, on the issue of banning cryptocurrency in India, BCFocus has reported about the central bank of India denying to make statements on the reasons for banning.
With the new proposals about to get introduced, the investors, crypto enthusiasts and the exchanges are expecting positive changes. It has almost been three months that Reserve Bank of India imposed a ban on cryptocurrency circulation, thereby, impacting trading volumes.
Representative of the Government of India
The Committee of the Government of India accountable for framing the proposal was initially not in favour of blanket ban. Previously, Subash Chandra Garg, the Department of Economic Affairs Secretary and head of the committee gave an interview in which he assured the confirmation. He stated that the regulations are at the final stage of getting finalised for the crypto industry.
According to his statement,`We are fairly close to developing a template [for crypto regulations] that we think is in the best interests of the country. We have prepared a draft which we intend to discuss with the committee members in the first week of July.”
The inter-governmental committee was first established in the first half of 2017. The primary motive of the body was to clarify the uncertainty pertaining to cryptocurrencies in India. Every significant sector namely the Reserve Bank, the ministries of the Indian government and nationalised banks presented their respective opinions on this particular issue.
However, Garg assured that substantial development has been made by the committee in drafting the regulations. The regulatory framework which would be tentatively submitted in July was actually supposed to be done last year. In the words of Garg, “We’ve actually moved quite a lot [in drafting regulations] in that, what part of the [crypto] business should be banned, what should be preserved and what not. That kind of detailed work has happened. Now should be in a position to wrap this up in the first fortnight of July.”
Amidst this regulatory matter, the crypto exchanges based in India have challenged the order of RBI to impose ban on banking services. The hearing date of this case is on 3rd July, 2018, two days prior to 5th July when RBI’s order would be implemented.
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