Reports: India’s Crypto Regulations Delayed, Government Considers ‘Crypto Tokens’

August 14, 2018
91 Views



Reports: India's Crypto Regulations Delayed, Government Considers ‘Crypto Tokens’

The Indian government previously planned to submit the proposal for crypto regulations in July. However, a senior official has revealed that the regulatory framework for cryptocurrencies in India has been delayed and will likely be ready by the year’s end. Meanwhile, the government is reportedly considering “launching crypto tokens for financial transactions.”

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Indian Regulations Delayed

Reports: India's Crypto Regulations Delayed, Government Considers ‘Crypto Tokens’
Subhash Chandra Garg.

The Indian government has been working on cryptocurrency regulations. A panel was set up in December last year under Subhash Chandra Garg, secretary in the department of economic affairs, to propose crypto regulations in India. The proposal was supposed to be ready in July and the regulations unveiled in September.

However, Quartz reported on Sunday, August 12, that a senior government official familiar with the panel’s discussions indicated that “now that ‘looks difficult’.”

The publication wrote, “India’s cryptocurrency regulations will likely come by end of 2018,” adding:

A finance ministry panel is still evaluating how to treat blockchain and cryptocurrencies separately.

The official explained to the publication that “there are lots of issues that need understanding and lots of studying needs to be done.”

The news outlet elaborated, “the key issue facing the panel is if regulations can be drawn up to push the use of blockchain independently” and quoted the official describing:

Blockchain is an interesting thing. We definitely want to milk it effectively for financial transactions. So all officials are really trying hard to understand how to separately use blockchain, without cryptocurrency…And understanding a new software takes time.

Indian Government’s ‘Crypto Tokens’

Reports: India's Crypto Regulations Delayed, Government Considers ‘Crypto Tokens’ On Friday, August 10, DNA India reported that the Indian government “is considering launching crypto tokens for financial transactions in the country, even as the existing ban on cryptocurrencies is likely to continue.”

While “crypto tokens are based on blockchain application,” the news outlet described that unlike cryptocurrencies, a “crypto token is a representation of money. It can’t be used in place of fiat money.”

The panel headed by Garg is also “studying the possibility of using various crypto assets, including cryptocurrency,” a senior official in the finance ministry explained and was quoted saying:

The committee is examining if crypto tokens can be used to replace smart cards such as metro cards in the public sector to start with. Similarly, in the private sector, it can be used in loyalty programmes such as air miles where its use is limited to buying the next ticket and can’t be converted into money.

While admitting that the new technology has a lot of promise, the publication noted that “Garg categorically denied allowing [the] use of cryptocurrency in any manner including in payment systems.”

When do you think India will finally come up with crypto regulations? What do you think of the government considering launching crypto tokens? Let us know in the comments section below.


Images courtesy of Shutterstock and the Indian government.


Need to calculate your bitcoin holdings? Check our tools section.

The post Reports: India’s Crypto Regulations Delayed, Government Considers ‘Crypto Tokens’ appeared first on Bitcoin News.



Source link

You may be interested

Charlie Lee: My goal with Litecoin is to create sound money – Blockmanity
Litecoin News
16 views
Litecoin News
16 views

Charlie Lee: My goal with Litecoin is to create sound money – Blockmanity

Editor - April 20, 2019

[ad_1] Charlie Lee: My goal with Litecoin is to create sound money  BlockmanityCharlie Lee, the creator of Litecoin, recently gave an…

Cryptocurrency Transaction Speed as of 2019 – U.Today
Litecoin News
21 views
Litecoin News
21 views

Cryptocurrency Transaction Speed as of 2019 – U.Today

Editor - April 20, 2019

[ad_1] Cryptocurrency Transaction Speed as of 2019  U.TodayWhat are the world's fastest cryptocurrencies? Read about the Top 10 crypto assets with…

Five of the best Litecoin wallets on the market – Coin Rivet
Litecoin News
42 views
Litecoin News
42 views

Five of the best Litecoin wallets on the market – Coin Rivet

Editor - April 20, 2019

[ad_1] Five of the best Litecoin wallets on the market  Coin RivetLitecoin wallets are essential if you want to store, buy,…

Leave a Comment

Your email address will not be published.