Centre Likely To Issue Detailed Guidelines On Cryptocurrency By September

The central government which is yet to clarify its stand on cryptocurrency may come out with a detailed paper by September this year, The New Indian Express has reported.

Finance ministry had constituted a committee to examine the framework regarding digital currencies like Bitcoin, which have gained traction in last two years. “The government will finally come up with detailed guidelines on cryptocurrency. We expect it to be ready by September,” a finance ministry official is quoted to have said to The New Indian Express.

Crypto currencies allow people to buy goods and services and exchange money without involvement of any central bank or any third party.

This comes after Internet and Mobile Association of India (IMAI) had moved the Supreme Court seeking a stay on Reserve Bank of India (RBI) circular which had effectively banned the use of cryptocurrencies in India.

A three judge bench headed by Chief Justice Dipak Misra heard the matter yesterday (20 July) and RBI submitted its report stating that crypto currencies would encourage illegal transactions. It also informed the court that a committee has been formed by the centre to come up with a regulatory framework. The centre sought three weeks time to submit its response, which was granted by the court.

The matter is scheduled to be heard on 11 September.

In another development, Bitcoin has risen by 20 per cent within a span of one week, possibly due to the bullish commentary from investment advisers. Another reason for the increase could be the news that asset management company Blackrock may enter the digital currency market.