Government Sets Up Inter-Disciplinary Committee to Examine Framework for Virtual Currencies (Download PDF)

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The Union Government has constituted a time bound committee which is inter disciplinary which has come up with an action plan with virtual currencies so as to fix the regulatory gaps in the existing framework governing virtual currencies. The committee is required to submit its report within three months.

What are virtual currencies?

  • It has been defined in 2012 by the European Central Bank as “a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community. ”
  • The Financial Crimes Enforcement Network (FinCEN), a bureau of the US Treasury, defined virtual currency in its guidance published in 2013.
  • In 2014, the European Banking Authority defined virtual currency as “a digital representation of value that is neither issued by a central bank or a public authority, nor necessarily attached to a fiat currency, but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically”.
Lessons from launching virtual currencies

Lessons from Launching Virtual Currencies

Lessons from launching virtual currencies

Need

  • The circulation of the virtual currency has been a cause of concern in India
  • The Reserve Bank of India has cautioned the users, holders and traders of Virtual currencies about the potential financial, operational, legal, customer protection and security related risks through press releases in December 2013 and February 2017.

Composition

  • The committee will have nine member that will be chaired by Dinesh Sharma special secretary in the economic affairs department.
  • The committee will also have representatives from the Department of Economic Affairs, Department of Financial Services, Department of Revenue, Ministry of Home Affairs, IT ministry, Reserve Bank of India, NITI Aayog and State Bank of India.

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- Published/Last Modified on: April 18, 2017

Committees & Bodies

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