The regulatory framework for the cryptocurrency sector, set by the head of Indian government committee has revealed that authorities will soon be drafting the final rules in July.
Within the period of three months of announcement of “banking freeze on the cryptocurrency trade to adversely affect trading volumes” by Reserve Bank of India, investors and exchanges were hopeful of rules that will regulate the industry.
In beginning of this month, we reported that the Indian government committee responsible for keeping check on regulatory framework was against the blanket ban of the cryptocurrency sector.
The news broadcast with India’s biggest financial news channel, the head of that government committee and the secretary of the Department of Economic Affairs Subash Chandra Garg agreed that the final stage of drafting regulatory framework for the cryptocurrency sector is very close.
`We are fairly close to developing a template [for crypto regulations] that we think is in the best interests of the country. We have prepared a draft which we intend to discuss with the committee members in the first week of July.”
First established in early 2017, the inter-governmental committee was anticipated to bring some clarity to the longlasting legal doubts of cryptocurrencies in the country. What followed has been anything but, with government ministries, the central bank, domestic banks and even the country’s finance minister weighing in with varying statements on cryptocurrencies.
Still, Garg insisted that the committee – which originally had three months to submit a report a year ago – had made momentous progress in developing a draft framework which is now forecasted in July.
“We’ve actually moved quite a lot [in drafting regulations] in that, what part of the [crypto] business should be banned, what should be preserved and what not. That kind of detailed work has happened. Now should be in a position to wrap this up in the first fortnight of July.”
Meanwhile, Indian cryptocurrency exchanges have fast-tracked their suit to legally challenge the RBI’s ban of their banking services with a hearing on July 3rd.
The court hearing is scheduled two days before the RBI’s order comes into effect on July 5. In preparation to the ban, some Indian exchanges like Zebpay have proactively warned users that withdrawals of their fiat funds will become “impossible” in the event of a banking blackout, urging them to do so before the ban kicks in.
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