The head of the Indian government committee tasked to propose a regulatory framework for the cryptocurrency sector has revealed authorities are close to finalizing a draft in July.
As it has been recently reported, Indian exchanges already began their preparations for the times when the ban enters into force. The exchanges have terminated fiat deposits and withdrawals and expanded crypto-to-crypto transactions.
Nearly three months after the Reserve Bank of India, the country’s central bank, introduced a banking freeze on the cryptocurrency sector to adversely impact trading volumes, exchanges and investors have remained hopeful of legislation that regulates – in effect recognizes and legalizes – the industry.
In a televised interview broadcasted on ETnow, India’s biggest financial news channel, the head of the government committee and the secretary of the Department of Economic Affairs Subash Chandra Garg confirmed that the authority is in the final stage of finalizing the regulatory draft framework for the cryptocurrency sector.
“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 Supreme Court has agreed to reschedule the hearing for an earlier date on request by one of the companies that have filed a petition – the Internet and Mobile Association of India (IAMAI). Now, it is planned to hold the hearing on July 3, before the planned enforcement of the RBI’s ban.
In preparation to the ban, some Indian exchanges like Zebpay have proactively warned users that withdrawals of their fiat funds will become impossible in the event of a banking blackout, urging them to do so before the ban kicks in.