Indian Government to finalize Crypto Regulatory framework

Pooja -

A recent RTI report confirms that the Indian government is on the final leg of amending the crypto regulatory framework.

The government authorities of the country were in process of creating a regulatory framework for crypto-related transactions. This task was taken care by the Inter-Ministerial Committee (IMC) headed by Subhash Chandra Garg, Secretary of the Department of Economic Affairs.

On Dec 13, the news outlet coincrunch filed an RTI asking three questions namely –

  • The first inquires whether the panel has submitted its report to the Ministry of Finance
  • The second asks if the panel has recommended a ban on bitcoin
  • Finally, a straight-forward question, “We would like to receive a copy of the report. Can we?”

In response to this the government replied back on last Friday – January 25, 2019 with a brief statement that,

The report of the committee is under finalization stage, hence, prohibited under section 8(3) of RTI Act, 2005.

Now if you are wondering what on earth does section 8(3) means, the news report explained that “Section 8 of the RTI act allows an entity to withhold the data in certain circumstances.”

Back in December 2018, the Ministry of Finance had explained during a parliament session that the inter-ministerial committee is tasked with analyzing all aspects of crypto assets and thereby develop a suitable crypto regulatory framework.

While the government is busy with forming proper crypto framework, there are conflicting rumors surfacing which adds up to more confusion. Reportedly, CNBCTV18 has stated that it has received information from unnamed sources saying that the IMC has considered cryptocurrencies as illegal in India. Contrary to which, NewIndiaExpress published an article detailing that the committee is considering legalizing digital assets.

Furthermore, the ministry of finance clarified that, the fact that the matter of cryptocurrencies is being pursued with caution because there is a need to devise a technically feasible solution in the absence of a globally accepted framework in place.

What do you think, will committee come up with optimistic answers for crypto community or form stringent environment for crypto to flourish? Share your thoughts in the comment section below.