It seems as if the end may be near when it comes to determining regulations, or even some semblance of clarity, for cryptocurrencies in India. This comes after months of delays, controversial statements, and, of course, the infamous ban.
According to Quartz India, next month could see the government present its draft cryptocurrency regulations. This is part of an ongoing court case after some in the crypto industry took the Reserve Bank of India to court for issuing a ban prohibiting financial institutions from having anything to do with cryptocurrencies.
India Stops Straddling the Regulation Fence
At one of the court sittings last month, the judge requested that the government file a counter-affidavit detailing their plans to issue a framework on cryptocurrencies. This was subsequently filed on the 19th of November. The draft that is discussed in the counter-affidavit was developed by a panel that the finance ministry set up in November last year. The document went on to state that more work will be going into the draft over the next few weeks. It also stated:
…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. The draft report and bill will be circulated to members of IMC (inter-ministerial committee). Thereafter the next meeting of IMC will be held so that discussion can take place on the draft report and bill. It is expected that the draft report will be placed before the IMC by next month.
The Case of the Controversial Ban Continues
The panel will meet again next month and in January next year to further discuss the draft report. While there has been a delay in the whole regulation creation process, Subhash Chandra Garg, who is heading the panel, has previously advised that the country would most likely see policies in place by March 2019.
The government’s counter-affidavit comes just before the ongoing case is set to be heard in the Supreme Court today, on the 20th of November.
The lack of clear regulations in India, as well as the aforementioned ban, has resulted in good crypto talent leaving the country. Zebpay was put under immense pressure after the enforcement of the ban and moved to crypto-friendly Malta. It has also instilled a sense of fear into those remaining in the country, especially after the co-founders of Unocoin were recently arrested after they launched the country’s first crypto ATM.
Do you think that we’ll finally see a resolution to the ban as well as clear crypto regulations in India? Let us know in the comments below!
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