India has been on the line when it comes to drafting regulations for the crypto sector in the country for years. This might however just be changing as it has emerged that the nation will be unveiling a draft of the regulations before the end of the year.
Preparations For Drafting of Regulations Underway
India’s finance ministry tasked a special panel with researching and coming up with suitable guidelines and regulatory norms for the Crypto industry in the country. According to reports by Quartz, which was made on Tuesday, this panel will be submitting its report on the same next month, December.
This news came to be known to the public through a counter-affidavit that was filed in regards to a Supreme Court case by the ruling government. The case has been brought forth by players in the Crypto industry who are challenging the ban that was imposed on the sector by the Central bank earlier on in the year, the RBI (Reserve Bank of India).
An excerpt from the counter-affidavit says in part that the government is in the process of making serious efforts to prepare the draft report as well as the bill for the digital currencies. The excerpt goes on to further state that similar efforts are being made with regards to the utilization of the distributed ledger technology in the country’s financial system and digital currency framework.
Draft of Regulatory Framework To Be Revealed Soon
The affidavit reveals that the drafted bill and the report will be handed over to the members of the inter-ministerial committee, which was formed by the finance ministry. After the drafted bill and the report have been forwarded to the committee, it will hold a meeting after its members have been furnished with copies. This will be taking place next month.
The inter-ministerial committee was first established early last year and was mandated with examining the global trends in legal and regulatory frameworks for digital currencies. In addition to this, the committee was also tasked with suggesting a suitable regulatory framework for the Crypto space in the country, applicable to usage and trading. The committee comprises of representatives from the central bank and the ministries of Taxation, Budget, and Economic Affairs.
Subash Chandra Garg, who is the Department of Economic Affairs secretary, is the current head and chair of the committee. The approach decided on by the panel will be revealed soon and is expected to significantly impact the country’s Crypto sector.
Ban Stifling Crypto Sector In India
Garg has revealed, during a television interview, that the commission has made significant strides in drafting the regulation even though it has not been able to honor deadlines for the revealing of the drafts.
The central bank of India has placed a ban on banks from providing financial services to Crypto based businesses. This move has made it virtually impossible for the Crypto sector in the country to progress with many in it closing down shop and moving to friendlier jurisdictions.