Quartz report on Tuesday, the finance ministry panel that is headed by Subhash Chandra Garg, secretary in the department of economic affairs has been working upon drafting the norms for virtual currencies, an excerpt from the government’s counter-affidavit reads:
The Reserve Bank of India (RBI), in April this year, asked all the financial institutions in the country to seize their business relationships with virtual currency exchanges within three months. Following the orders that impacted several crypto entrepreneurs, a case was filed against the RBI and the Modi government accusing them of sabotaging the entire ecosystem.
During a hearing on Oct 25, the court asked the government to file a counter-affidavit and outline its policy regarding virtual coins, which is still being formulated. Notably, the counter-affidavit filed by the government mentions that the panel including India’s taxation, budget and economic affairs ministries as well as central bank representatives have held two meetings—on Nov. 27, 2017, and Feb. 27 this year.
Subsequently, several other meeting was also observed to discuss and understand the working and the requirements of the cryptocurrency ecosystem. It was mandated to submit draft regulations by July this year but it has been delayed. The case filed by the bourses is expected to come up for hearing by a bench comprising justices RF Nariman and Navin Sinha in the supreme court today (Nov. 20).