The Indian government plans to set up a new panel of experts to study the cryptocurrency regulations in India. This news comes amid the view of recommendations by the committee. It was headed by the Former Finance Secretary Subhash Garg in the year 2019.
The new committee will explore the use of blockchain in terms of the advancement of technology and suggest regulations for crypto as a part of digital assets. The designated committee will also study ways for regulating the RBI’s proposed digital rupee. According to the officials, the government feels that the recommendations made by Subhash Garg are outdated and needs a fresh look at the use of the latest crypto rules instead of putting a complete ban.
According to sources, the finance ministry is regularly monitoring the growth volume of crypto transactions in India. Previously, Anurag Thakur, Minister of State for Finance and Corporate Affairs, met members of the banking and crypto industry regarding this aspect.
Thakur is one of those members under consideration who will be a part of the committee, representing the opposition party. Nirmala Sitharaman’s Finance Ministry team will be briefing the minister later by the end of this month regarding the developments in the crypto space.
The Crypto and Regulation of Official Digital Currency Bill, 2021 was supposed to be tabled in the budget session but was canceled. This bill, if passed, will criminalize crypto trading. In 2018, RBI strictly placed the rule allowing customers to trade in crypto. However, in 2020, the Supreme Court dismissed the ban after the petition was filed.