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India can legalize Cryptos but under "strong" rules: relationship

The Indian government could legalize cryptocurrencies, but with difficult terms and conditions, as a report suggests.

According to an article published by New Indian Express on Wednesday, an interdisciplinary committee set up by the government to investigate cryptocurrencies is not in favor of an absolute ban.

An anonymous senior official who attended committee meetings told the newspaper:

"We have already had two meetings, there is a general consensus that the cryptocurrency can not be dismissed as completely illegal, it must be legalized with strong pilots.

The government setting up the commission in April 2017 tasked with examining the existing legal framework for digital currencies and suggesting new measures to tackle technology, including the resolution of consumer protection and money laundering issues. Members include representatives of government departments for economics and taxation, as well as the central bank and other agencies.

The second iteration of the group should now present its new report to the country's finance ministry by February 2019.

The article apparently indicates a softening of the position by the committee, which, in October, recommended that the government develops an "appropriate legal framework to prohibit the use of private cryptocurrencies in India".

Further dampening of the country's cryptocurrency industry, including confusing messages about the legal status of bitcoin and its crypto-colleagues, an April order from the Reserve Bank of IndiaThe Indian central bank has prevented domestic banks from providing services to cryptocurrency companies such as exchanges.

Since then, exchanges have sought ways to prevent their businesses from failing, by entering legal petitions to overturn the RBI ban at the country's supreme court. I look for advice, the court, October 26th, asked the government to provide its opinion on cryptocurrencies within two weeks.

While no official announcement has yet been made to provide guidance, this situation looks set to change in the coming months.

With India, a member of the G20 group, the rules for governing local cryptographic space could be influenced by the planned regulatory guidelines of the international economic forum, the report added.

The official told the New Indian Express:

"We have also taken input from cryptocurrency exchanges and experts and will look into legal issues with the Ministry of Law.It is a complicated problem.After all aspects are decided, then we will have more clarity."

Image of Indian bitcoins and rupees through Shutterstock

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