Fast-tracking of status on cryptocurrency assets may be in works

business-standard.com:

India may soon have a greater clarity on regulation of crypto assets as the government has stepped up efforts in that direction.

The recent meeting of the Financial Stability and Development Council (FSDC), chaired by Union Finance Minister Nirmala Sitharaman, impressed upon the members the need for a clear consensus on the legality of cryptocurrencies. The message was that regulators must fast-track the initiative.

The Council discussed at length whether to legalise or ban crypto assets, according to two people privy to the discussions.

"The status of crypto assets was among the key agenda discussed in the Council meeting. The Council was of the view that all ambiguities should be put to rest soon," according to a top official in the know.

Discussions are learnt to have veered around two key points—views on a complete ban and who should be the regulator if the government decides to legalise crypto assets. Other options such as a partial ban and allowing a select few crypto products also came up, one of the officials said.

The meeting, attended by financial sector regulators and senior officials, deliberated on the concern over being non-compliant with the Financial Action Task Force (FATF) guidelines. FATF standards ensure a co-ordinated global response to prevent organised crime, corruption and terrorism as well as help authorities go after the money generated from such crimes.

India, like many other countries, is currently not FATF-compliant on crypto assets. FATF requires countries to have a clear stand on legalising or banning crypto assets.

Views are divided within the government departments on whether crypto currencies should be banned. The Reserve Bank of India, however, has been in favour of a complete ban on