Crypto Regulatory Framework in Final Stage: Indian Authorities

Jan 28, 2019 at 16:00 Update Date :Jan 28, 2019 at 16:00 UTC

The Indian Government might be on its way to finalizing guidelines for a regulatory framework for cryptocurrencies. The step is being taken by an Inter-Ministerial Committee and was confirmed in response to a Right to Information (RTI) filed for the same.

Report Almost Finalized

The Indian Government is following in the steps of developing and developed countries alike worldwide, who are chalking out regulations for dealing with crypto assets. Subhash Chandra Garg, Secretary of the Department of Economic Affairs, is leading the Inter-Ministerial Committee (IMC) to outline the country’s regulatory framework.

A local news publication had first filed the RTI with the Department of Economic Affairs on Dec. 13 last year, seeking responses to three questions.

  • Has the Panel submitted the report to Ministry of Finance?
  • Has the panel recommended a ban on Bitcoin?
  • We would like to receive a copy of the report. Can we?

The Indian Government kept its responsive short and to the point stating:

“The report of the committee is under finalization stage, hence, prohibited under section 8(3) of RTI Act, 2005.”

As per Section 8 of the RTI Act, it “allows an entity to withhold the data in certain circumstances.

The Draft That Never Came

The head of the IMC had stated in June last year that his committee was working on preparing a draft framework, which would be ready by July. Needless to say, the report was delayed.

Another publication wrote that the draft would be presented to the IMC members in December and January meetings.

In December 2018, the Indian Ministry of Finance stated in the Lok Sabha, the lower house of the country’s parliament, that the committee was responsible “to study all aspects of cryptocurrencies and crypto-assets including bitcoin.

The country’s central bank, the Reserve Bank of India, had recently issued a circular with regard to cryptocurrencies, enforcing rules that prohibit any bank in the country to provide crypto-related services.

Also Read: Reserve Bank of India Have No Plans to Launch State-Backed Cryptocurrency

 

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