Indian Government Clarifies Status of Cryptocurrency Trading, Regulation, Investor Protection
India’s Ministry of Finance has answered some questions regarding the status of cryptocurrency trading in the country as well as crypto regulation and investor protection. The minister of state for the finance ministry has indicated that the recommendations in the draft bill proposed by the interministerial committee are still being considered.
Indian Government Answers Crypto Questions
The Indian minister of finance was asked about cryptocurrency trading in Lok Sabha, the lower house of India’s parliament on Monday.
The first question concerns “the status of cryptocurrency trading in India.” Minister of State for the Ministry of Finance Shri Pankaj Chaudhary replied, “This information is not collected by the government.”
His answer reiterates what the finance minister recently said that the government does not collect information on the number of cryptocurrency exchanges or traders in India and has not been informed of any fraud conducted by any exchanges.
The second question was about “the current regulatory regime surrounding cryptocurrency and its trading.”
The minister of state explained that all entities regulated by the central bank, the Reserve Bank of India (RBI), have been advised to carry out customer due diligence processes in line with a number of regulations, including know your customer (KYC) standards, anti-money laundering (AML) law, Prevention of Money Laundering Act (PMLA), and Foreign Exchange Management Act (FEMA) for overseas remittances.