The government of India can legalize cryptocurrencies, but with strict regulatory conditions, as reported by the New Indian Express news agency.
According to the New Indian Express article, published on Wednesday December 26, the interdisciplinary committee created by the government to investigate the cryptocurrency case does not support a direct ban on the use of digital money.
Indian legislation and cryptocurrency
An anonymous high-ranking official who attended the committee’s meetings told the New Indian Express: "We already had two meetings. There is a general opinion that a cryptocurrency cannot be rejected as a completely illegal phenomenon (...) This should be legalized, but with strong regulations. Discussions are still ongoing (...) We also received information from cryptocurrency exchanges and experts, and we will study legal issues with the Ministry of Justice. It's a difficult question. As soon as all aspects are resolved, we will clarify the situation."
As is known, the government of India created a committee in April 2017 with the aim of studying the existing legal framework related to digital currencies. As expected, the interdisciplinary committee will propose new measures for the operation of this technology, including problems with consumer protection and money laundering. The committee included representatives of government departments for economics and taxation, as well as the Central Bank and other state financial institutions.
It is currently expected that the second iteration of the group will submit its new report to the Ministry of Finance of India by February 2019.
Today’s discussion of cryptocurrencies points to a significant softening of the position of the committee, which in October recommended the government to develop "appropriate legal framework prohibiting personal use of cryptocurrencies in India".
In India, they can legalize crypto-coins, but since the shadow business is flourishing in the country, digital money will most likely be strictly controlled.
Editor: Pereyidenko Ihor