Cryptocurrencies have got a chance for legalization in India, though with certain limits for the sector.
During the meeting of the special crypto committee, one of the officials stated that following several discussions it had been agreed that the country might not completely outlaw the cryptos, but to accept virtual currencies with heavy supervision. As he added, this issue remains subject to further talks.
The crypto committee created in April 2017 believes that it would be wrong to fully ban the cryptocurrencies in India. Specifically, this body is aimed at studying all possibilities of the crypto regulation in line with the existing legal framework as well as implement new rules to protect users and prevent money laundering activities. Members of the committee came from fiscal, economic and other departments along with the representative of the CBI.
According to the news reports, the authority is said to present a new report to the Ministry of Finance by next February.
In the October recommendations, the committee noted the need for corresponding legal background for the cryptos in India.
For reference, the Central Bank of India banned financial institutions from providing any services to the companies dealing with the cryptos, including trading platforms. However, the situation still can reverse.