India to Have Comprehensive Crypto Regulations by September, Official Says

An unnamed senior official from India’s Ministry of Finance confirmed that the Indian Supreme Court is expected to issue a comprehensive set of cryptocurrency laws and regulations by September, according to a report by the New Indian Express.

A draft the country’s proposed cryptocurrency legislation was completed in mid-July. “The draft is ready and consultation is on with all the stakeholders,” and is now under review, the official told the news source. The “stakeholders” include the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Board of India (SEBI), the Internet and Mobile Association of India (IAMAI), and the Reserve Bank of India (RBI).

“The ministry has constituted an interdisciplinary committee under the chairmanship of Special Secretary (Economic Affairs) to examine the regulatory framework regarding virtual currency,” the publication stated, adding that both RBI and SEBI had expressed “some reservations” over certain clauses in the draft.

Will Cryptocurrency be Legal in India?

“Most of the officials have serious reservations against it, which all of us agree with … we want to arrive at a common conclusion. There must be an appropriate mechanism to regulate the same,” the official said.

Following the RBI's ban on cryptocurrencies, rumors have circulated for months that the Indian government has been considering a sweeping ban on crypto. However, it seems unlikely that the proposed legislation will take any extreme measures.

Breaking! Supreme Court of India refuses to grant temporary stay against RBI's banking restriction against Crypto. Stay tuned for further updates! #rbiupdate

— Crypto Kanoon (@cryptokanoon) July 3, 2018

“I don’t think anyone is really thinking of banning it (Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term) altogether,” an anonymous government official told Quartz earlier this month. “The issue here is about regulating the trade and we need to know where the money is coming from. Allowing it as (a) commodity may let us better regulate trade and so that is being looked at.”

Indeed, the government’s main goal seems to be preventing cryptocurrency from being used in illegal activities. “What has to be in place is a mechanism to be sure that the money used is not illegal money, and to track its source is the most important thing,” the official from the Indian Ministry of Finance said.

The Indian government has also set a date for Supreme Court hearings on cryptocurrency-related petitions to September 11.