The Indian Government Seeks a Regulatory Framework for Bitcoin

The government of India has announced the creation of an Inter-Disciplinary Committee chaired by Special Secretary (Department of Economic Affairs) to examine the existing framework of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term such as bitcoin. It includes representatives from Department of Financial Services, Department of Revenue, Ministry of Home Affairs, Ministry of Electronics and Information Technology, Reserve Bank of India , NITI Aayog and State Bank of India.

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The committee will take stock of the present status of cryptocurrencies both in India and globally; examine the existing global regulatory and legal structures; suggest measures for dealing with issues relating to consumer protection, money laundering, and more. It has been tasked to submit it’s report within three months.

Industry response

The Digital Assets and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term Foundation of India (DABFI), an association of Indian bitcoin, cryptocurrency and blockchain companies, has welcomed the move. "We have seen that in countries where governments have come out with a self regulation policy, created an environment for the bitcoin/ blockchain technology to grow, those countries have become the epicenter for innovation.

Digital India is the dream of our current government. By setting up a high level committee to study and give suggestion on virtual currency regulations, government has again shown their keenness to study, understand and take well thought decisions.

We request that the committee will give us an opportunity to meet them and showcase the benefits of this technology for our country. Financial inclusion, cheaper cross border remittance, full trace & track on the movement of value on the blockchain network, and potential for India to become a financial hub are key benefits that can be derived using virtual currencies."