The Government of India is in the last stages of finalising regulations on cryptocurrency according to a ‘Right to Information’ response from the Department of Economic Affairs.
The response was with respect to the RTI filed by a group called Coin crunch India at the end of 2018, enquiring as to whether the panel on cryptocurrency had recommended a ban on Bitcoin and if they had submitted any such report to the Finance Ministry.
“The report of the Committee is in the finalisation stage, hence, prohibited under section 8(3) of RTI Act, 2005,” the ministry said in its response.
There have been many rumours that the government plans to called cryptocurrency ‘illegal’ in India but the reply indicates that the government is still working on its final report.
IAt the end of last year, the Finance Ministry had explained during a session in Parliament that the inter-ministerial committee tasked with analysing everything to do with cryptocurrency assets is in the process of developing a suitable cryptocurrency regulatory framework.
The Government had established a panel in December2017 headed by Subhash Chandra Garg, the Secretary of the Department of Economic Affairs. This panel was tasked with examining a framework for cryptocurrency regulation. Other members of the panel included SEBI Chairman Ajay Tyagi and RBI Deputy Governor BP Kanungo.
The Indian Government has not formally declared anything with respect to the legalisation of cryptocurrency. The response from the Department of Economic Affairs does not clarify whether or not the government is planning to regulate cryptocurrency. The official response is ambiguous. As of now, cryptocurrency is still legal in India until the government declares otherwise. The future of cryptocurrency in India has been unclear for a long time now. In April of last year, the RBI had basically banned banks or e-wallets from “dealing with or providing services to any individuals or business entities dealing with or settling virtual currencies.”
Trade digital assets on Belfrics’ cryptocurrency exchange (www.belfrics.io) or download the Belfrics App so that you reap the rewards associated with a possible bull run in the virtual currency marker that suitable regulation could bring.