India May Regulate Cryptos Instead of Total Ban!
India may regulate cryptos with stronger norms instead of a total ban if we are to believe the news report by The New Indian Express.
The New Indian Express published a news report and stated that an interdisciplinary committee set up by the government to investigate cryptocurrencies, is not in favor of an outright ban.
A senior official whose name was not disclosed in the news report quoted to The New Indian Express stating, “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. We will have more clarity soon,”
On 11th April 2017, RBI notified that virtual currencies as a medium of payment are not authorized by any central bank or monetary authority regulated by RBI.
Subsequently, on 12th April 2017, Indian Government notified that it has set up an Inter-Disciplinary Committee chaired by Special Secretary (Economic Affairs) to examine the existing framework with regard to Virtual Currencies.
On December 2017, The Income Tax Department of India conducted nationwide survey operations at major Bitcoin/Crypto exchanges on suspicion of alleged tax evasions. At the same time, the Government of India cautioned against risks in investing virtual currencies.
On October 2018, Financial Stability and Development Council (FSDC) was briefed by High-level Committee chaired by the Secretary (Economic Affairs) to create an appropriate legal framework to ban the use of private cryptocurrencies in India instead suggested to encourage the use of Distributed Ledger Technology.
G20, the group of the world’s 20 biggest economies, agreed to introduce regulations on Virtual currencies (a word used instead of crypto-assets) to counter money laundering and financial terrorism and was attended by interdisciplinary committee members. The Financial Action Task Force (FATF) recommendations are recognized as standard against the global anti-money laundering (AML) and counter-terrorist financing (CFT) released its report on G20 Leaders’ Summit.
Coming back to the news report, which further stated a senior official quoting, “We have also taken inputs from cryptocurrency exchanges and experts and will be examining legal issues with the law ministry. It’s a complicated issue. Once all aspects are decided, then we will have more clarity,”
However, this news is just about the recommendations and the deliberations by interdisciplinary committee and nothing concrete is out yet.
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