Centre may constitute new panel to study cryptocurrency regulations in India: Report

Crypto stakeholders cheered the move on Twitter considering it as a positive signal

The Centre may form a new panel to study the possibility of regulating cryptocurrency in India, amid “prevailing views” that previous recommendations need to be revisited, sources told The Economic Times.

The view is that recommendations made by the previously constituted committee under former finance secretary Subhash Garg “have become outdated”, the report noted. This committee had in 2019 recommended a blanket bank on crypto assets in India.

Moneycontrol could not independently verify the report.

One official said: “There is a view within the government that the recommendations made by the Subhash Garg committee are dated and a fresh look is needed at use of crypto rather than a total ban.”

The discussion are still at “early stage” and there is no formal decision as yet. There is also no indication yet of who would be on the new panel.

Also Read | Crypto exchanges say SEBI or a new entity, not RBI, should regulate the sector

The new panel will likely consider use of blockchain technology, suggest methods for crypto to be used as digital assets instead of as currency, and study ways to operationalize the Reserve Bank of India’s (RBI) proposal for digital rupee, it said.

Other sources told the paper the Finance Ministry is “monitoring growing volumes of crypto trading in India” and will talk to stakeholders on “potential supervisory risks”.

Finance Minister Nirmala Sitharaman is expected to be briefed about these developments later in May, another source added.

The Finance Ministry did not respond to queries, as per the report.

Earlier, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 which was to be tabled in Parliament in March 2021 was delayed for unknown reasons.