A government committee has already met twice on the crypto matter and a report is expected to be submitted to the country’s Ministry of Finance next month, as per the New Indian Express. The legalization of digital assets and cryptocurrencies will happen under strict conditions, as per a source who spoke to the publication.
The source allegedly commented that they have already had two meetings and there is a general consensus among the committee members that cryptocurrency and digital assets cannot be dismissed as completely illegal. Furthermore, crypto needs to be legalized with strong riders, as per them.
The inter-disciplinary panel has also consulted cryptocurrency exchanges and experts, besides holding meetings. The panel is now reportedly planning on deliberating on legal matters with the law ministry.
Notably, the inter-ministerial committee was formed last year. It is the second committee to focus on cryptocurrency regulations in India. It is to be noted that the second committee was constituted after the first government panel formed to address the issue of cryptocurrencies suggested a total ban on virtual currencies and digital assets in India, later in 2017.
Interestingly, the RBI went on to declare cryptocurrencies and digital assets illegal, after the recommendation by the first panel. As a result, all financial institutions regulated by India’s central bank were forbidden from offering any sort of services to crypto-related businesses.
Notably, members of the first committee included India’s central bank, the Reserve Bank of India, the Ministry of Home Affairs, the Ministry of Electronics and Information Technology, the Ministry of Finance, the National Institution for Transforming India (NITI Aayog), the Central Board of Direct Taxes, and the State Bank of India. The second panel constitutes members from the same institutions in addition to SEBI.
It is to be noted that this is not the first time, a report has come out in India raising hopes that cryptocurrencies and digital assets could be legalized. It was reported, mid last year, that the inter-ministerial panel on cryptocurrencies and digital assets was not in favor of a total ban. Rather, it preferred allowing the regulated trading of virtual currencies and digital assets.