New Reports Show Draft Bill In The Works For Crypto Regulation In India To Be Presented At The End Of The Year
Though India has taken a derogatory stance on cryptocurrencies in the past, it seems that they are joining many other countries in their decision to establish regulations. Though nothing has been settled yet, reports from Quartz India indicate that a draft bill on crypto regulation should be presented in December this year.
In this report from the local news website, they state that there was a counter-affidavit filed on November 19th. The affidavit was filed by “a clutch of cryptocurrency exchanges who have accused the government and the central bank of choking the ecosystem.” Due to their accusations, the finance ministry panel has decided to come up with a draft to outline the regulations that cryptocurrencies and exchanges have to follow within the country.
Over the next few weeks, the committee is meant to continue discussions on the draft bills. It is headed up by the department of economic affairs Subhash Chandra Garg. On the upcoming draft, Garg noted,
“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.”
Quartz India said that the next meeting to discuss the bill will specifically center around draft legislation. Based on their documents, it is “expected that the draft report will be placed before the IMC by next month.” Furthermore, there are two meetings in January next year that Garg’s panel will be discussing cryptocurrency regulation at. During these meetings, the committee has the ability to present legislation and hear additional inquiries.
The path to finally establishing regulation over cryptocurrency has been an ongoing struggle since April 2018. At the time, RBI decided to stop offering assistance to anyone involved with cryptocurrency, whether they were an individual or a business. After announcing this decision, eleven crypto-based businesses collaborated in a lawsuit against RBI in the Supreme Court, hoping to force them to alter their stance. The hearing was finally held in October after many delays.
In the hearing, the Indian government was provided with a two-week limit to decide on an official stance on cryptocurrency. Not long after, the Indian secretary of Economic Affairs suggested that a ban on “private cryptocurrencies” be issued by the Ministry of Finance. However, at least for now, the future remains uncertain for cryptocurrency in India.