The The long-awaited regulations for the Indian cryptocurrency ecosystem are now likely to come only by the end of the year, says report.
According to local report, the finance ministry panel is still evaluating how to treat blockchain and cryptocurrencies separately.
Although the Narendra Modi government and the Reserve Bank of India (RBI) had expressed their inclination to adopt blockchain, there have been misgivings on the latter.
The panel, set up in December 2017 under Subhash Chandra Garg, secretary in the department of economic affairs, to suggest regulations on cryptocurrencies, was expected to submit its proposal by July.
Now that “looks difficult,” according to a senior government official privy to the panel’s discussions.
“There are lots of issues that need understanding and lots of studying needs to be done,” the official added, requesting anonymity.
Also, the key issue facing the panel is if regulations can be drawn up to push the use of blockchain independently. Blockchain is a digitised and decentralised public ledger for all cryptocurrency transactions. If financial application is removed from it, this tool is essentially a bookkeeping platform that is owned by nobody but can be accessed by anybody on the internet.
“Blockchain is an interesting thing. We definitely want to milk it effectively for financial transactions. So all officials are really trying hard to understand how to separately use blockchain, without cryptocurrency,” the official explained. “And understanding a new software takes time.”
Meanwhile, representatives of India’s cryptocurrency community have met the government to help them understand the subject better.