Indian Gov’t Updates Its Approach To Cryptocurrency Regulation. The Indian Government has been approaching the country’s regulatory framework for cryptocurrencies with caution. It includes all the related information in areas such as the country’s cryptocurrency and licensing of crypto businesses.
The Ministry of Finance has reportedly answered some questions regarding cryptocurrencies asked by Lok Sabha. A document circulating on social media details the five questions as well as their answers by Shri Pon Radhakrishnan, Minister of State in the Ministry of Finance. He said that the lack of a “globally acceptable solution” meant lawmakers were unlikely to issue formal statues in the short term.
Addressing the lower house of parliament, the Lok Sabha, the Minister said on Dec. 28:
“In absence of a globally acceptable solution and the need to devise a technically feasible solution, the department is pursuing the matter with due caution. It is difficult to state a specific timeline to come up with clear recommendations.”
The minister explained that the government has constituted an inter-ministerial committee “under the chairmanship of Secretary, Department of Economic Affairs, with representatives from concerned departments to study all aspects of cryptocurrencies and crypto-assets including bitcoin.”
The committee includes representation from the Ministry of Electronics and Information Technology, the Reserve Bank of India (RBI), the Securities and Exchange Board of India, and the Central Board of Direct Taxes.
India Enforcing Ban on Cryptocurrency-Related Operations
As of now, India is currently enforcing a ban on banks servicing cryptocurrency-related operations. This has led to the exit of several crypto businesses due to the enforcement of this ban which started in July. Up to this point, neither the national bank nor the government has been moved by the consumer backfire. A legislative board source stated earlier this month that the recommendation to make cryptographic money mostly illicit was still on the cards.
“The government has not recognized cryptocurrencies as legal tender. The issue of permitting trading in cryptocurrencies is currently under examination by an inter-ministerial committee.”
-The minister wrote, in response to the question of legality
The government also declined to keep track of the value of cryptocurrencies traded by Indian nationals within the country. The minister also confirmed, “No decision on licensing and authorizing any entity or company to operate such schemes or deal with bitcoins or any virtual currency has been made as yet.”