The Indian government has confirmed reports containing the regulatory framework of digital currencies put together by an inter-ministerial committee. This is according to a report by local news outlet Coin Crunch India.
Crypto regulation report in its final stage
According to Coin Crunch India, the Indian government has been working on regulating the crypto sector over the past few months. The government put together the Inter-Ministerial Committee (IMC) headed by Subhash Chandra Garg, Secretary of the Department of Economic Affairs. The new committee was tasked with putting together a regulatory framework for the cryptocurrency sector.
Coin Crunch India in its report on Friday stated that the framework is in its final stages. The media outlet filed a Right to Information (RTI) request with the Department of Economic Affairs on Dec. 13, 2018, seeking answers to three questions. The first question was if the committee had submitted its report to the Ministry of Finance. The publication also wanted to know if the committee has issued a recommendation to ban Bitcoin. Thirdly, they asked for the copy of the report.
In response to these requests, the Indian government replied with a short statement: “The report of the committee is under finalization stage, hence, prohibited under section 8(3) of RTI Act, 2005.” This is the section of the RTI that allows withholding the data in certain circumstances.
Last year, the Ministry of Finance explained to Lok Sabha, the country’s lower house of parliament that the committee was put in place to study all aspects of cryptocurrencies and crypto-assets including Bitcoin.” They added that the committee is working on developing a framework to regulate digital currencies.
Subhash Chandra Garg, Secretary of the Department of Economic Affairs, previously explained that a draft report by the committee would be ready in July last year. However, the report was delayed. In November, Quartz India reported that the draft report would be presented to the IMC by December.
Different reports on crypto regulation in India
In fact, there have been numerous and conflicting reports regarding crypto regulation in India. CNBC Tv18 last month reported that the Garg committee recommended regarding cryptocurrencies as illegal. However, the New Indian Express published a report in December stating that the committee had recommended cryptocurrencies to be legalized in the country.
The Ministry of Finance explained the work done by the committee. They explained that “In the absence of a globally acceptable solution and the need to devise [a] technically feasible solution, the department is pursuing the matter with due caution”. However, the ministry also made clear that the clear timeline for the definite recommendations cannot be set yet.