Indian Policy on Virtual Currencies Expected Early 2019

Wilfred Michael 

Wilfred Michael

Reporter

21 November 2018,
04:15
Indian Policy on Virtual Currencies Expected Early 2019

The wave of crypto regulation is finally settling in India with recent reports revealing that a draft rule to govern cryptocurrencies will be released early next year.

Quartz India reports that the Indian Government and the Central Bank of India have submitted a counter-affidavit as requested by the Supreme court to clear up the uncertainty around the use of cryptocurrencies in the country.

On Nov 15th, while hearing a case between the government and crypto exchange owners, the court asked the government to present an affidavit before the next court hearing. The exchange operators are accusing the government of ‘choking’ the crypto ecosystem by ordering banks to stop doing business with them.

In what could be considered an answer to the accusation, the filed court-affidavit now assures that the matter will be resolved sooner rather than later. The Indian government and its Central Bank appointed a Committee to draft the regulations and the document will be ready by the end of next month.

“Serious Efforts” Going Into Indian Crypto Regulation

The counter affidavit further explains that “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,”

Next month, the Committee is scheduled to hold a meeting during which the draft bill will be made subject to further discussions. A follow-up meeting is also billed for January 2019 while the head of the Committee, Subhash Chandra Garg, earlier revealed that the draft should be finally ready by March 2019.

If this were to happen, then India will become among the world’s first governments to release regulations for the crypto industry. Other smaller nations like Malta, Singapore, and Thailand are currently leading such efforts.