India’s Ready to Clarify its Stance on Cryptocurrencies

Blockchain Technology

The Indian government may be one step closer to clearly spelling out its policy on cryptocurrencies. A finance ministry panel set up in November 2017 could be ready with draft regulations next month. This was clarified by the Narendra Modi government in a counter-affidavit, a copy of which has been reviewed by Quartz, filed in the supreme court on Nov. 19. India’s top court is hearing a case filed by a clutch of cryptocurrency exchanges who have accused the government and the central bank of choking the ecosystem.

The finance ministry panel, tasked with drafting the norms for virtual currencies, is headed by Subhash Chandra Garg, a top civil servant, currently a secretary in the department of economic affairs. In the following weeks, the committee is expected to discuss the issue further, the government’s counter-affidavit said.

“…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 next two meetings of the Garg panel, to be held next month and in January 2019, will deliberate the draft report, and the provisions of the draft bill on virtual currencies, the government’s counter-affidavit said.


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