The cryptocurrency community in India has some good news to cheer on after a top official told news publication, New Indian Times, that “clarity” around the industry will soon be made available.
The top official who was quoted anonymously by the news source is said to belong to an interdisciplinary committee appointed in 2017, by the Indian Government. This body is primarily tasked with deciding whether the nation will legalize cryptocurrencies or continue with the outright ban which they have placed on it till date.
The official revealed a decision reached by the committee at the end of a recent meeting. He said that the committee has decided to legalize cryptocurrencies in India rather than ban it outrightly. However, the legalization will come at the cost of imposing stringent rules on the space.
He said in the report,
“We have already had two meetings. There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on.”
Moving further, he explained that the decision was reached after the committee collected inputs from crypto exchanges and experts in the country and beyond. Legal issues are also expected to be cleared up with the law ministry in the coming months before the committee steps up to provide “more clarity.”
As stated in the report, the Interdisciplinary committee will submit a statement to India's Finance Ministry in February 2019 paving the way for other processes regarding a regulatory framework to be taken.
India Edges Closer To Crypto Regulation
Recent events point to the fact that the issue of legalizing cryptocurrencies in India will happen sooner rather than later.
In November we reported that the Reserve Bank of India (RBI) submitted a counter-affidavit to the country's Supreme Court stating that they would release a framework for cryptocurrencies in early 2019.
The RBI had banned local banks from doing business with crypto exchanges in the country, a situation that stiffed the use of the digital assets and led the exchanges to shut down operations.
In response, the exchanges charged the RBI to court for infringing on their rights to run a business which the county's constitution upholds. The Supreme Court which judged the matter asked the Reserve Bank of India to clarify their stance about cryptocurrencies as soon as possible.
So the dawn of the regulatory framework is more imminent than at any other time even though the rules may be “strong” as the official asserted.
What matters right now is not how strong the rules will be, but that somehow the Indian crypto shore will be opened before the end of 2019!
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