India likely to be ready with draft cryptocurrency regulations by December

The Indian government may be ready with its first framework for cryptocurrency regulations by December 2018. According to Quartz, the Subhash Chandra Garg committee in-charge of formulating a policy for cryptocurrencies has already decided on the key issues and may present the draft regulation and bill in front of an Inter-Ministerial Committee next month. The same was stated in a counter-affidavit filed by the government in the Supreme Court following the Apex Court order earlier.

In the next two meetings of the Garg Committee, planned in December 2018 and January 2019, the members will discuss about the draft bill on cryptocurrencies in greater detail. While the bill may take some time to be formulated and passed, the draft framework will finally indicate the direction the Modi government wants to take with cryptocurrencies.

Considering the tone token in the affidavit, it is likely that the government may bring it under a regulatory framework instead of banning it outright. However, this cannot be said for certain. Last month, we had reported that an FSDC meeting had taken a very negative view on cryptocurrencies. The counter-affidavit should give relief to many Indian investors who have been waiting for more clarity from the government. Fingers crossed the government takes a progressive stand towards cryptocurrencies in India!