A new report by Inc 42 has revealed that the Subhash Chandra Garg-led cryptocurrency committee has submitted a report to the government last month, which includes a draft of the proposed crypto regulatory framework. The bill may be tabled in the Parliament as early as the upcoming Budget session, subject to Cabinet approval and government’s own stance on cryptocurrency.
As we reported earlier, the proposed bill is called the Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019. While the name of the bill indicates that the committee has proposed a ban, the contents of the actual report and the proposed framework have not been revealed yet.
According to a senior Department of Economic Affairs (DEA) official who spoke to Inc 42, it is for the government to decide whether to put the draft bill in the public domain. However, the entire process may take anywhere between 3-6 months.
The DEA official did not indicate the position the committee has taken on cryptocurrencies. However, the official stated that the government will need to come up with new regulations regardless of its position on cryptocurrencies.
DEA rejects RTI Application regarding the Cryptocurrency Bill
In a related case, the Department of Economic Affairs rejected an RTI application filed by Coin Crunch India seeking more information around the cryptocurrency bill. The reason for rejection was that the information sought will be made public very soon. Again, this does not give any clarity on what the committee is thinking on the matter.
Hope with BJP 2.0
The BJP-led NDA government won a decisive mandate from India earlier this week. Now the big question in front of the Indian crypto community is about the approach the new government will take regarding regulations. While the earlier government’s conservative stance and the subsequent banking ban does not inspire confidence, there is a chance that changing dynamics of the crypto world may force the new government to have a more open approach towards cryptocurrencies.
The G20’s call for a progressive crypto regime, the entry of giants such as Facebook, Amazon and Microsoft into the space, NASSCOM’s push for cryptocurrency industry’ inclusion in RBI’s new regulatory sandbox and the continued efforts from the Indian crypto community may change the stance of the government.
In addition, there are high chances of Piyush Goyal becoming the next finance minister of India. Goyal is a chartered accountant with extensive experience of working in the banking sector. There is hope that he may be more sensitive to the demands of the cryptocurrency community.
Our Indian viewers can also watch a video we published on our YouTube channel which states our expectations from the new government: