India could finally release the long-awaited normative draft on cryptocurrency before the end of the year. This happens in the middle of the current prohibition posed by the RBI, excluding banks from dealing with cryptocurrency exchanges.
Draft document for cryptocurrency regulations
Second Quartz India, the virtual currency panel set up by the Ministry of Finance is intended to release a virtual currency regulatory project in December. This new development came to the fore through a sworn counter-statement by the government to the government on Monday (19 November) filed in the supreme court of India. The Supreme Court currently has a case involving local digital currency exchanges that challenge the RBI ban.
A part of the counter-declaration law:
At present, major efforts are under way to prepare the draft report and the bill on virtual currencies, the use of distributed ledger technology in the (the) financial system and the digital currency framework in India.
The counter-affidavit also reveals that the draft regulatory report and the draft law would spread to members of the inter-ministerial committee (IMC). The IMC, in turn, will hold a meeting to discuss both drafts, which will be available to committee members by December.
The sworn counter-statement from the government also stated that the group on digital money would hold two meetings in December 2018 and January 2019 respectively. These meetings will discuss the report and the bill on cryptocurrency.
The Indian draft regulation on virtual currency in December would have been decisive for deciding the fate of the cryptocurrency trade in the country.
Current regulatory landscape of cryptocurrency
The Indian government has created an unfavorable atmosphere for the cryptocurrency trade to thrive in the country. The attitude of the government towards the virtual currency industry has triggered the crisis of the cryptic community, causing some exchange platforms that seek more friendly climes.
Recently, a panel of cryptocurrencies, chaired by Subhash Chandra Garg, revealed during the FSDC meeting that a total ban on virtual currency was imminent. However, experts stated that it was impossible to ban virtual currency in the country. The experts also said that even if there was a general ban, the implementation would be difficult.
The country has also seized its first Bitcoin ATM installed by Unocoin and arrested two of its co-founders for the installation of the machine without permission.
The country's top bank, the RBI, has banned commercial banks from conducting banking services for virtual currency exchanges in April. This action has received a lot of backlash for the cryptocurrency industry, which has gone on to sue the bank. Subsequently, exchanges such as Zebpay moved to Malta, a country favorable to cryptocurrency.
Image courtesy of the Ethereum World News archives.