As per record, almost a week before, India’s Finance Minister Arun Jaitley convened an inter-ministerial meeting. The discussion was held basically over the risks related to virtual or digital currencies.
In fact before this meeting, in April this year an Inter-Disciplinary Committee comprising nine members including representatives of RBI, SBI, NITI Aayog and Department of Financial Services were given a task to research over the issue.
This panel was tasked to examine the existing framework on digital/crypto currencies both in India and globally and come out with measures for dealing with such virtual currencies on issues relating to consumer protection, money laundering etc. The Centre had given three months’ time to the panel for submitting this report.
According to the media source, Business Line, the report has been submitted and received by India’s Finance Minister. Though the content is still unknown.
Breaking the good news, Jaitley had recently informed Parliament that there has been a “notable growth” in the bitcoin market in India over the last few years. Though some of the critical issues that need to be addressed in India is the accounting and taxation treatment of the virtual currencies.
There is an ongoing debate within the country as to whether crypto-currencies including bitcoins should be legalised or not. Some of the start-ups such as ZebPay want ultimately exchanges to get licences just as banks are granted licences. Discussions and decisions both are been taken good care of.
As a result, India is bit closer to the finishing work over the proposal.