India is Advancing on Crypto Regulation Amid Ban Rumor
Despite rumours that the government of India is already making plans to ban crypto for good, crypto regulation in the country is advancing as there have been reports stating that some recommendations have been enacted. Also, a draft bill on the regulatory framework for virtual currencies is been disseminated among important divisions of the government.
Ministry of Finance’s Confirmation and Government Deadline
A survey was recently conducted by the Ministry of Finance of which the result led to a summarised report of the activities carried out by the government in 2018.
The report states that:
“An inter-ministerial committee under the chairmanship of Secretary, Department of Economic Affairs with representatives from concerned departments has been constituted for considering all aspects related to virtual currencies and crypto assets,”
“Various options for treating virtual currencies and crypto assets including banning/regulating are being examined by the committee.” It continued.
The government of India was expected to submit a report detailing the legal framework for virtual currency to the Supreme court in March, however, the court postponed the hearing without attending to the issue. The hearing was adjourned to the 23rd of July and the community is hopeful that the mater will be addressed then.
India Working With FAFT
According to the report, the Department of Revenue in India has been working hand in hand with the Financial Action Task Force (FAFT) in several ways which include digital currency.
FAFT is an international organization which creates standards and advocates for the implementation of legal, operational, and regulatory limit for the fight against money laundering and for the financing of terrorist worldwide.
The Department of Economic Affairs in India was previously working with the FAFT but due to Gazette Notification which was issued on 9th November 2017, the work was passed unto to the Department of Revenue.