Indian news outlets announced that the country may legalize cryptocurrencies with strict terms and conditions attached. According to the New Indian Express’ article, the government has set up an interdisciplinary committee to investigate cryptocurrencies.
An anonymous senior official said:
“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.”
The Indian government has created the committee in April 2017 with the remit of examining the existing legal framework related to digital currencies. The committee suggests new measures to deal with the technology, including addressing issues around consumer protection and money laundering. Members include representatives from government departments for the economy and taxation, as well as the central bank and other agencies. The committee will be submitting its new report to the country’s finance ministry by February 2019.
In April 2018, the Reserve Bank of India said in a statement:
“It has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling [cryptocurrencies]. Regulated entities which already provide such services shall exit the relationship within a specified time.”
While talking about the regulation, Mr. Nischal Shetty, CEO of WazirX reached out to India’s top lawmaker on Twitter. The CEO requested the minister to focus more on cryptocurrencies’ potential benefits rather than its limited misuse. Mr. Shetty claimed that every industry has its own problems and they shouldn’t be the reason to hamper innovation which could benefit the country’s growth.