Cryptocurrencies in India: the fog of regulation and the dawn of the future: the conviction of India's four-way payment platforms

In India, the regulatory path regarding cryptocurrencies seems to be fraught with uncertainty. Recently, the government shared some insights on the direction of cryptocurrency policy, including its stance on the country's digital currencies and the licensing of related businesses. The government is reportedly taking a cautious approach to moving forward with regulations.

However, the exact timeline for the enactment of these regulations remains a mystery. During a question in the Lok Sabha, the lower house of India's parliament, the finance ministry revealed some details. A document circulating on social media shows Assistant Finance Minister Shri Pon Radhakrishnan answering five questions on the regulatory framework for cryptocurrencies. The responses are expected to be published on 28 December.

One of the key issues mentioned in the document was the recommendation of an expert panel on "regulation of cryptocurrencies" and the expected timeline for the issuance of regulations. The minister said an inter-departmental committee, headed by the secretary of the ministry of economic affairs, has been set up to look into cryptocurrencies and crypto-assets such as Bitcoin. The committee includes representatives from the Ministry of Electronics and Information Technology, Reserve Bank of India (RBI), Securities and Exchange Board of India and Central Board of Direct Taxes. On when concrete recommendations could be made, the Minister noted that it would be difficult to set a clear timeline in the absence of a globally recognised solution.

On the issue of legality, the Minister made it clear that the government does not consider cryptocurrencies as legal tender and is reviewing whether to allow cryptocurrency trading. The government also denied any intention of tracking the value of cryptocurrency transactions made by Indian citizens in the country. As to whether any entity is authorised to deal in Bitcoin or other cryptocurrencies, the Minister confirmed that no such authorisation has been issued yet.

Further, the Minister also revealed that the Commission is considering the possibility of introducing an official digital currency, including its pros and cons. This is of particular interest as it could foreshadow India's future direction in the digital currency space.

Against this backdrop, a number of websites pretending to be "Blockchain Net" have appeared on the market. Blockchain Net, a well-known domestic blockchain media outlet, clarified in an official statement that its official website is "qklw.com" and is currently in the testing phase. Blockchain Net has moved out of Beijing's Zhongguancun district and officially merged with Guangzhou Jincai Domain Name Technology Co. due to suppression by competitors and financial problems. An official statement warned that any website bearing the name "Blockchain Net" is fake and consumers should be vigilant.