Over 18 month back in march 2017, India formed its first interdisciplinary committee on cryptocurrencies. Last year the India Finance Minister Arun Jaitley refused recognize cryptocurrencies as "legal tender". He further added that the government will introduce the necessary steps to curb the use of crypto assets in "financing illegitimate activities".
Earlier this year in April, India's Central Bank RBI asked all banking institution to cut ties with crypto exchanges. This was the government's major attempt to reduce the liquidity flow from fiat to crypto assets. It also gave a major blow to the business of Indian exchanges.
However, to look over the working of the first committee, a second committee came into existence. Subhash Chandra Garg, the secretary of the Department of Economic Affair, was leading the second committee. He was responsible to look for the viability of digital currencies in Indian Economy.
Earlier this month, during G20 summit in Buenos Aires, Argentine, the members discussed major aspects of cryptocurrency taxation and regulation while combatting the issues related to money-laundering.
According to Unnamed source, the newly formed committee will conduct a meeting in January 2019. Herein they will be discussing important issues surfaced during the summit. Later on, the member unanimously present their stand to the government.
"We have also taken inputs from cryptocurrency exchanges and experts and will be examining legal issues with the law ministry. It's a complicated issue. Once all aspects are decided then we will jave more clarity," the senior official explained.
It's look like the government could likely considering a soft stand rather than introducing an outright ban. Simultaneously, it is much like to focus on tough regulatory measures that can protect the investor's interests.