Most of you wold remember from our earlier posts, that the Finance Ministry had set-up an intergovernmental committee in March this year to research and propose a framework for digital currencies in India including Bitcoins. The primary task of the committee was to study the legal status of the cryptocurrency market globally in addition to studying existing regulatory and legal framework. Basis this, the committee was to suggest measures to ensure consumer protection and avoid money laundering. While the committee was still in discussions, regulation were introduced in Japan and South Korea.
The inter-disciplinary committee has submitted its report to Mr Jaitley. The inter-disciplinary report is yet to be made public, and hence the government’s position remains to be seen in this regard. However, given the push of the current government on digital India and Cashless India, it seems difficult that the government can ignore the elephant in the room anymore.