A draft of the crypto regulation in India will be ready in December. This is expected to ease the mode of operation in the crypto space of the country.
Draft Of Crypto Regulation In India
The status of Cryptocurrency and its definition is set to receive a new boost as expected by most Crypto enthusiasts in the country next month. This will be aided with the release of a Crypto regulatory draft by the committee saddled with the responsibility by India’s finance ministry.
The revelation of the release period of the draft regulatory law was made known in a counter affidavit filed by the India ruling government in a supreme court case which sees India’s domestic cryptocurrency exchange industry challenge the banking ban enforced by the central bank earlier this year.
The counter affidavit filed by the government stated that serious efforts are going on for preparation of the draft report and the draft bill on virtual currencies, use of distributed ledger technology in the financial system and framework for digital currency in India.
Also, the affidavit noted that the draft bill and report would be sent to the members of the finance ministry, the intergovernmental committee that was tasked to Examine the global regulatory and legal framework for Cryptocurrencies. Also, the committee which is inclusive of taxation, budget and economic affairs ministries and the central bank representative have the right to propose the regulatory framework for Cryptocurrencies in India for usage and trading.
India’s Crypto Space
The hostile environment that has been initiated in India has led to the desertion of the country by some Crypto startups. The ban that was enforced led to starving of Crypto startups in the country of banking services. Exchanges such as ZebPay have had to migrate to Malta where there is a conducive environment for Crypto operation.
The regulatory committee is being chaired by Subash Chandra Garg, the head of the committee and secretary of the Department of Economic Affairs. The view of the committee on the status and operation of Crypto industry in the country will be revealed at a time when the country is already considering an outright ban of digital currency in the country.
Though the Cryptocurrency market is still evolving and is being battled by volatility, an appropriate regulatory framework would aid countries to reap the dividend of the nascent industry for their citizens.