A report published in an Indian newspaper today cited reliable sources to claim that the Indian government is likely to legalize cryptocurrencies in India in 2019. An interdisciplinary committee is reportedly against an outright ban of the cryptocurrencies. They are in favor of legalizing the digital asset under strong terms and conditions.
What does the Report say?
A senior official who attended the meetings of the government appointed interdisciplinary committee said (with the condition to remain anonymous):
“We have already had two meetings. There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on.”
More about the Interdisciplinary Committee, their Roles, & Changing Suggestions
The Indian government set up this interdisciplinary committee for examining the current legal framework regarding cryptocurrencies. The committee formed back in April 2017, is expected to suggest new measures to the Indian government related to the new, emerging technology. Reports say the committee will also suggest measures for dealing with the money laundering and consumer protection issues related to cryptocurrencies.
The members of this committee include representatives from –
- The government departments including taxation and economy
- Reserve Bank of India (RBI)
- Other agencies
The committee’s second iteration of the report is expected to be submitted to the finance ministry of India by February 2019.
The article indicates that the government-appointed committee has softened its stance since its first recommendation back in October 2018. At that time, the committee suggested the government to develop an appropriate legal framework for banning private cryptos in India.
The concerned official also reportedly said:
“We have also taken inputs from cryptocurrency exchanges and experts and will be examining legal issues with the law ministry. It’s a complicated issue. Once all aspects are decided, then we will have more clarity.”
No official announcement has been done yet by the committee or the Indian government about their stance on cryptocurrencies. However, reports say the Indian government’s stance towards cryptocurrencies is likely to become more favorable in the coming months.
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