India May Regulate Bitcoin By The End Of March

News, Regulation | February 6, 2018 By:

The government of India is set to regulate bitcoin and other cryptocurrencies, said Economic Affairs Secretary Subhash Chandra Garg.

The news came after India’s finance minister Arun Jaitley said the government does not recognize cryptocurrency as legal tender or coin, and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system.

During the CNBC TV18-Mint event on Budget 2018, Garg said the government will come out with a framework to regulate cryptocurrencies by the end of this financial year. (The Indian government’s financial year runs from April 1 to March 31.)

“We hope that within this year, the committee will finalize its recommendations and then it would require legal changes, regulatory assignments, but certainly there will be regulations by the end of this financial year,” said Garg.

At the moment, not all crypto exchanges in the country comply with know-your-customer (KYC) norms. This in spite of the tax department surveying and even reaching out to individual users of popular bitcoin exchanges.

Garg said the exchanges which have been set up currently are not regulated exchanges. They are in a way self set-up and self-regulated.

“There are no legal or statutory requirements for conducting the KYC, there are no records of the transactions,” said Garg. “When you move to a system of regulated exchanges for crypto assets, then you have a proper trail.”