As per reports, the Government of India may be putting the legalization of cryptocurrencies in the pipeline. Such legalization, however, would be followed under strict conditions.
A government committee has reportedly met at least two times to discuss the issue of legalization of cryptos. As per a report by the New Indian Express, a detailed report is expected to be submitted to the Finance Ministry by February 2019.
Current debates going on in the specialised government committee have pointed towards the fact that the government has reportedly accepted that digital currencies cannot be ruled out as completely illegal.
An interdisciplinary panel has also been formed by the government to look into the legal matters regarding cryptocurrencies. This panel involves cryptocurrency experts and other stakeholders.
Interestingly the first governmental panel formed to create a regulatory framework around cryptocurrencies had, in March 2017, said that digital currencies and crypto assets should be banned entirely.
The government subsequently formed another committee with the intent to regulate the crypto industry rather than outrightly ban it.
The first committee’s suggestion of complete on ban cryptocurrencies had led to the central bank declaring cryptocurrencies as illegal assets. Subsequently, the decision was questioned in the highest court of India, and it led to the formation of the second committee.
Consequently, Reserve Bank of India’s declaration to prohibit banks and financial institutions from dealing in cryptocurrencies resulted in crypto firms such as Zebpay moving their businesses out of India.
Reports of the legalization of cryptos by the Indian government have been doing rounds for quite some time now. In 2018, media had published reports claiming that the government committee had declared cryptos to be legal assets.
However, until now there is no formal word from the government on the same. Let’s wait and watch to see if the government of the world’s sixth largest economy will give any clarity on the cryptocurrencies any time soon.