India is going to legalize cryptocurrencies, but subject to strict regulation

According to the new media, the Indian authorities are supposedly able to legalize cryptocurrencies , but under tough conditions.

According to an article in New Indian Express published on December 26, the interdepartmental commission created by the Indian government to study cryptocurrencies does not support the idea of a total ban on cryptocurrencies, contrary to what the media previously reported .

A member of the commission, who was at all meetings of its members, spoke on condition of anonymity:

“Among the experts, members of the commission, there is a consensus: we believe that cryptocurrency cannot be outlawed. They should be legalized, but strict restrictions are necessary. Discussions continue. ”

In April 2017, the Indian authorities created a commission (committee) to study legislation on digital assets in different countries and to propose practical steps to resolve this area, including protecting investors and fighting money laundering.

The commission included members of the government dealing with issues of taxation and economics, representatives of the central bank and other departments. The commission is expected to submit a final report to the country's finance minister in February 2019.

New Indian Express notes the softening of the position of the commission, which previously advised the authorities to "ban the circulation of cryptocurrency in India."

Against the background of the absence of a legislative base and contradictory signals from the authorities on the possible legal status of cryptocurrencies, in April the Reserve Bank of India, the country's central bank, aggravated the already difficult situation by banning local banks from working with cryptocurrency companies such as exchanges.

Trying to save their business, the Cretacerans appealed to the authorities with a petition asking them to lift the ban on the Reserve Bank of India. On October 26, the Supreme Court asked the government to speak on this issue for two weeks, but no official statements followed. Apparently, the situation may change in the coming months.

Since India is in the G-20, the legislative decision may be influenced by legislative steps that participants in the upcoming World Economic Forum are likely to make.

A commission member told New Indian Express :

“We have heard the opinions of representatives of cryptocurrency exchanges and experts, and intend to consult with the Minister of Justice. It's a difficult question. When all aspects of this phenomenon are considered and discussed, we will achieve clarity. ”

Although we do not have comprehensive data on the number of cryptocurrency users in India, according to some estimates, the number of active traders reaches (or has reached this year) five to six million. According to Reuters, which conducted a survey in January of this year, for a period of 17 months, Indian citizens conducted trades and other cryptocurrency transactions in the amount of $ 3.5 billion.

Share your opinion on this issue in the comments below.