With the Indian national elections now over, focus returns to the murky regulatory waters that the local cryptocurrency ecosystem has faced since 2017.
According to the local news agency, Inc42, the country’s lawmakers will during June’s Budget Session debate a bill targeted towards the regulation of the use of cryptocurrencies in India.
An official of the Department of Economic Affairs (DEA) who spoke to Inc42 on the condition of anonymity, confirmed that it is now over one month since the committee set up to draft the proposed rules submitted it the Indian government.
The official then reckoned that the government has the opportunity to decide when to bring the draft bill into the public domain for consultations by lawmakers and stakeholders. The process of approval, according to the DEA official, could take a further three to six months beginning from whenever the government unveils the bill.
He, however, failed to disclose whether the regulations will mean a ban for cryptocurrencies as earlier reports suggested, or allow the industry to exist as a legal sector in India. He only mentioned that the proposed rules would provide regulatory certainty and clear up any questions that arose as a result of the lack of clear guidance for the industry for the last two years.
It is no longer news that the Indian government maintains a negative stance towards the use of cryptocurrencies with the Reserve Bank of India (RBI) banning banks from dealing with exchanges and also excluding crypto startups from a fintech sandbox.
The coming months will reveal whether the government will finally have its way and announce a blanket ban on the use of cryptocurrencies or follow guidelines set forth by its allies at the G20 member nations on how to regulate the space.