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India may form a new panel to study crypto regulations

Updated: Jul 25, 2024
Published: May 19, 2021
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The Indian government could form a new panel of experts to study the possibility of regulating cryptocurrencies. The new committee would explore the use of blockchain and possible technological improvements to its market. It plans to suggest ways to regulate cryptocurrencies as digital assets. The panel will also be asked to study ways to implement the Reserve Bank proposed Indian digital rupee.

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Finance Minister Anurag Thakur considering risks

The finance ministry has been keeping an eye on the growing volume of cryptocurrency trading in India. Admittedly, it is talking to stakeholders about potential supervisory risks. Minister of State for Finance and Corporate Affairs, Anurag Thakur, had earlier met members from the crypto and banking industry forums in this regard.

Thakur is one of the dozen names being considered to join the committee. The group could also have representation from the opposition party. For now, there are no details on who will be part of the panel.

A calibrated approach

The finance minister Nirmala Sitharaman's team is expected to brief them on ongoing cryptocurrency developments later this month. This is taking place amid growing traction on crypto exchanges due to continued retail demand.

Sitharaman and Thakur have both said publicly that the government would take a "calibrated" approach in regulating cryptocurrencies rather than imposing an outright ban.

The Government's approach is likely to be guided by the Committee's recommendations. Additionally, the law in its current form is expected to criminalize trading and the holding of cryptocurrency assets.

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