Crypto India: PM Modi Reportedly Held High-Level Meeting About Crypto Regulations

The latest update in the ongoing debate around crypto regulations in India, saw the authorities assemble this Thursday, for a high-level meeting, to discuss manifold regulatory options, weighed together with their respective pros and cons. Furthermore, the discussion also incorporated the stakeholder perspectives on crypto, along with Reserve Bank of India’s (RBI) PoV on the matter.

According to insider report from the Economic Times, “PM will now take a final call on these”. However, the discussion process may as well be extended, continuing today to reach a decision on the regulatory framework for crypto in India. While the finance ministry had finalised a draft note on the proposed bill, yet, post internal conflicts, the authorities have settled to engage in further deliberations on the Indian Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

Indian Authorities Stand Divided on Crypto Regulations

It has become evident that eminent organisations in India are discontent with the present outline of the Crypto Bill. Yesterday, CoinGape had reported on the Indian Trade Association, Confederation of Indian Industries’ (CII) suggestions on crypto regulations in the nation. CII asserted in its latest report, that cryptocurrencies should be regulated as special class securities, under an exclusive securities law, specifically focused on regulations for “dealings and custody, rather than on issuance”, with an exception for ICOs.

“Instead, a new set of regulations appropriate to the context of crypto/digital currencies and their jurisdiction-less, decentralised character, should be evolved and applied. This would mean regulatory focus principally on dealings and custody, rather than on issuance (except where issuance entails an Initial Coin Offering (ICO) to the public by an issuer established in India).”, stated the report.

CII also recommended on strengthening oversight on crypto exchanges and custody providers, by creating centralised versions of the same. Furthermore, according to CII, these centralised crypto exchange platforms and custody providers must also be required to register with SEBI along with adhering to verification systems including KYC details.

The Finance Ministry is attempting to prevent extreme regulatory measures, given the scope of crypto in India. Nevertheless, financial institutions and other government organisations may have something else in mind.