India will likely welcome crypto regulations by end of 2018.

Amidst the evaluation of finance ministry panel regarding the separate treatments of blockchain and cryptocurrencies, it is speculated that the regulations for the Indian cryptocurrency ecosystem which was long due, will be out by the end of 2018.

Financial Panel for Regulations

With the intention of suggesting regulations on cryptocurrencies, the ministry set up a separate finance ministry panel led Subhash Chandra Garg, secretary in Economic Affairs Department, in December 2017. However, the Reserve Bank of India and the Narendra Modi government have both agreed to adopt blockchain. Regardless of the RBI’s and PM’s decision, the finance ministry panel has doubts regarding the cryptocurrencies. A senior government official who wishes to stay anonymous revealed,

“There are lots of issues that need understanding and lots of studying needs to be done.”

For all the cryptocurrency transactions, blockchain is a decentralized public ledger. And if we remove the digital asset aspect from it, it will just be accessible to anyone on the internet under no one’s ownership. Thus, the main problem that the panel is facing is the use of the blockchain system independently. The officer further said,

“Blockchain is an interesting thing. We definitely want to milk it effectively for financial transactions. So all officials are really trying hard to understand how to separately use blockchain, without cryptocurrency and understanding new software takes time.”

Support from communities

Several Indian Cryptocurrency community representatives have also stepped forward to help the government understand the concept better. Ajeet Khurana, head of the blockchain and Cryptocurrency Committee said,

“In fact, we had one meeting specifically on this topic. A public blockchain needs to have a token and you can’t have it by excluding cryptocurrencies. Moreover, a public blockchain is analogues to the internet and no one can control it.”

 

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