The Indian government has reportedly filed an affidavit with the country’s supreme court detailing its progress on cryptocurrency regulations. “Serious efforts are going on” to prepare the draft crypto bill and report, the government explained. The two are expected to be discussed by the inter-ministerial committee by next month.
Government’s Counter-Affidavit
The Indian supreme court has been trying to hear the petitions against the crypto banking ban by the central bank, the Reserve Bank of India (RBI). On Oct. 25, the court directed the government to file a counter-affidavit within two weeks, detailing its crypto regulatory progress. The court specifically asked for a report from the committee set up by the finance ministry to recommend crypto regulations. This committee is headed by Subhash Chandra Garg, the country’s Economic Affairs Secretary.
On Tuesday, Quartz reported that the government has filed the counter-affidavit with the supreme court, which the publication claims to have reviewed.
“A finance ministry panel set up in November 2017 could be ready with draft regulations next month,” the news outlet wrote. It proceeded to publish the following excerpt from the counter-affidavit:
"currently, 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".
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The publication continued to explain that “It is expected that the draft report will be placed before the IMC [inter-ministerial committee] by next month.” Both the draft report and the bill will be circulated to IMC members and discussed at the next IMC meeting
According to the counter-affidavit, “The next two meetings of the Garg panel, to be held next month and in January 2019, will deliberate the draft report, and the provisions of the draft bill on virtual currencies,” the news outlet conveyed.
The central bank issued a circular in April banning financial institutions under its control from providing services to crypto businesses. The ban went into effect in July. A number of petitions have been filed against the ban.
The central bank issued a circular in April banning financial institutions under its control from providing services to crypto businesses. The ban went into effect in July. A number of petitions have been filed against the ban.
The Indian supreme court scheduled to hear all the petitions against the ban on Sept. 11. However, the hearing has repeatedly been postponed. Then, on Oct. 25, the court directed the government to submit the counter-affidavit before the next hearing is scheduled.
Meanwhile, banks have closed accounts of crypto exchanges, forcing them to come up with their own solutions to provide fiat support to their customers such as through peer-to-peer systems.
What do you think of how the Indian government handles crypto regulations? Let us know in the comments.