Recent reports suggest that the Indian government is likely to reconsider its previous stance on digital currencies by forming a new regulatory body.
to the the report Coin Telegraph, The Economic Times of India on Wednesday Report According to three informed sources, the Indian government has formed a new group of experts with the aim of regulating digital currency transactions in the country.
The move comes amid growing support for the repeal of recommendations made in 2019 by a committee led by former Indian Finance Minister Subhash Garg to ban digital assets altogether. Proponents of her case have been working to make the actual transcript of this statement available online.
The report quoted an unnamed official as saying:
The government’s view is that the recommendations made by Subhash Garg are old-fashioned and that a new look is needed at the use of digital currencies instead of banning them altogether.
The new group is likely to investigate the use of the Blockchain to advance technology and suggest ways to regulate digital assets independent of Fiat currencies. The group may also work closely with the Bank of India on the proposed digital rupee project.
According to the report, Interior Minister Anurag Thakur may be considered for joining the group.
Both Indian Finance Minister Thakur and Indian Finance Minister Nirmala Sitharaman have previously said that the government would rather take a prudent approach to regulation than to impose a total ban on digital currencies.
The Bank of India banned all banks from providing digital currency trading conditions to customers in 2018, but the country’s Supreme Court lifted the ban in February 2020 following a lawsuit filed by entrepreneurs and financial technology experts in India.
Earlier, there were reports of a complete ban on digital currencies, and an anonymous source claiming to be a high-ranking official in the Indian Ministry of Finance confirmed the reports.
The Economic Times report added that the Digital Currency Bill and the official digital currency regulation for 2021 were scheduled to be considered in the Indian Parliament in March, but were postponed for unknown reasons.
Sitaraman is expected to be briefed by his team on digital currencies later this month, and is once again holding his breath in Indian circles of the digital currency industry.
Despite persistent fears of regulatory issues, India has seen a massive leap in digital currency exchanges in recent months and a steady demand from small investors.