• The Indian government will regulate but not prohibit trading in cryptocurrencies.
• Subhash Garg will lead the committee to talk about crypto regulations.
The central government of India could establish a new panel of analysts to regularize crypto trading. This move comes from Subhash Garg, a former finance secretary in 2019, who heads a committee that wants to ban cryptocurrencies.
The new committee will focus on Blockchain exploration to improve the technology and suggest new regulations. The new vision is anchored because the cryptocurrency will be regularized as a digital asset and not a fiat currency. The committee may look for ways to put the bank of India’s suggested digital rupee to work.
The government of India will likely introduce new crypto regulations to avoid its total blockade. These discussions are only just beginning, so no real consensus has been reached on the issue. Many sources close to the Indian government clarify that this crypto regulation could alleviate these new talks.
Progress on crypto regulations
Sources close to ET say that the finance ministry was continuing to monitor the growth of cryptocurrencies. This financial body thinks that digital currencies have many risks and, therefore, must be supervised.
Anurag Thakur, Minister of State for Corporate Affairs, had meetings with crypto forum members. Thakur may be a pivotal piece on the committee that will champion cryptocurrency regulation. However, the ET could not verify who the active members are on the committee to speak about the crypto regulations.
But the finance minister, Nirmala Sitharaman, is expected to report on the decisions in the last days of May. The committee is acting amid a massive cryptocurrency exchange process with sustained low demand.
Thakur does not respond to crypto regulations
Many emails have been sent to Thakur’s office and finance ministry, but there have been no responses. Crypto regulations in India, for now, have been a mystery, but in the coming months, a pandora box might open in the Indian finance market.
Both Thakur and Sitharaman have publicly said that the Indian government would take a balanced approach to crypto regulations. The committee meeting was proposed for March, but it was postponed. There is still no exact date reached on which they will discuss the project.
The measures that India has taken in the past on cryptocurrencies have not been beneficial. In 2018, the RBI banned national banks from trading cryptocurrencies, preventing thousands of citizens from investing in them. However, this regulatory measure was annulled in 2020 following a request from Indian business people, the internet and technology association IAMAI.