Along with the crypto market, crypto regulations are also on the rise. Initiating in Europe and then managing to capture South America, now, crypto regulations are headed towards Asia. The new finance secretary of India who formerly served as secretary of the Department of Economic Affairs (DEA), Subhash Chandra Garg, has assured the completion of the report, encompassing framework for cryptocurrency regulation in India. While speaking on the event organized by the Associated Chambers of Commerce and Industry of India, Garg revealed that the report is finalized and will be presented soon to the prime minister. He notified:
We will submit it to the finance minister (soon). Of course, once the approval is done, it will be made public.
At the moment, Garg is leading a committee that was bestowed the task of drafting a framework for crypto regulations in the country. Representatives from other sectors such as the Reserve Bank of India (RBI), the Ministry of Electronics and Information Technology, the Central Board of Direct Taxes and the Securities and Exchange Board of India are also members of the committee.
Garg is quite late on delivering the report which was supposed to be submitted at least a year ago. Last July during an interview, he unfolded his efforts about creating the committee and forwarding a report to the finance minister. However, back then, he couldn’t keep up his words. At that time, his exact words read:
We are fairly close to developing a kind of template which we think might be in the best interest of our country. We have prepared a draft which we intend to discuss with the committee members in the first week of July.
As Garg’s words can’t be taken for granted, this time his latest affirmations about the report can be double checked by the government’s response to a Right to Information (RTI) request, filled by Naimish Sanghvi, the founder of Coin Crunch, a local news outlet based in India. The RTI was filed on 26 April 2019 and DEA rejected it 20 May 2019.
As Section 8(1)(i) was the reason referred to for rejection by DEA, this means that the information will be revealed to the public in future so that’s why RTI was rejected for time being. This shows that regulations are established behind the curtains and will be conveyed to the public at a suitable time.
In the past, RBI had been strictly ordering all financial institutions to refrain from providing any kind of crypto services to businesses. Due to RBI prohibiting institutions, banks stopped accounts of cryptocurrency exchanges and imposed a ban. Ever since that, the bitcoin and crypto enthusiasts have been campaigning all over India for uplifting the ban.
At the front was Nischal Shetty, CEO of local crypto exchange Wazirx, who began a campaign to restore the use of cryptocurrencies. On Twitter, he tried to gather crypto enthusiasts and supporters for his campaign “#Indiawantscrypto”.
Shetty also urged Arjun Jaitely, the former finance minister of India who later passed on the charge to currency minister Nirmala Sitharaman, to bring positive regulations for a community of 5 million Indian cryptocurrency users. He suggested that bitcoin and other cryptocurrencies played an important role in the country where the supply of jobs wasn’t sufficient for catering to the needs of youth.
Dear @arunjaitley @PMOIndia Please bring positive regulations in Crypto and over 5 MILLION crypto Indians will be thankful to you. Youth of India have found a new way to make wealth & this is especially important when there are not enough jobs for everyone ?? #isupportcrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) ١ نوفمبر ٢٠١٨
At present, Indian crypto enthusiasts are looking forward to two matters: crypto regulations and the uplifting of crypto ban. While all eyes were focused on the Supreme Court of India who was to decide the fate of bitcoin and other cryptos on 3 June 2019, the court has set a new date and crypto enthusiasts have to wait until 23 June 2019 to see if the decision goes in their favor.
As many countries are indulged and inclined to bring bitcoin and other crypto regulations, the sentiment about around the crypto space is changing gradually. Even regions where banks had intervened long ago to ban cryptocurrencies, the prospects of making bitcoin legal along with other digital currencies are rising. It will be of interest to see how the Supreme court of India manages to make a decision for the cryptocurrency enthusiasts while ensuring the satisfaction of banks.