Regulatory Series on Cryptocurrencies: Indian legislators reluctant on cryptocurrencies

With cryptocurrency prices turbulence, prices declined in early December but bounced back since mid-December. Particularly, BTC approaching above $5,500 mark, we provide an update on some important regulatory matters around cryptocurrency space. 


We already reported that a senior government official from a board created by Indian finance ministry admitted that there have been ideas of creating India’s own government-backed digital coin.

However, for now, the governmental committee backs and upholds the plans of making digital assets legal given that they are stringently regulated.

The Indian central bank (RBI) has currently, put a blanket ban on cryptocurrencies. Back in last April, the Reserve Bank of India (RBI) instructed all financial institutions in the territory to abstain from rendering services to cryptocurrency trading exchanges and other related companies.

For now, a committee under the Government of India drafted a bill “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019” which likely to imposes to prohibition on cryptocurrency transactions across the geographical boundary of the country. The detailed consultation on the draft bill is being held between the various portfolios of the Government.

The Supreme court of India has given a deadline of four weeks for the legislature to come up with detailed cryptocurrency regulations. Furthermore, a committee under the Government with representatives from various ministries under Finance Secretary, Shubash Chandra Garg was drafting the bill since then.

Currency Strength Index: FxWirePro's hourly USD spot index is flashing 84 (which is bullish) while articulating (at 08:01 GMT). 

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