India Inches Closer to Developing Cryptocurrency Rules

India's government is reportedly moving closer to developing regulations around cryptocurrencies.

Local news outlet MoneyControl reports that officials with the country's central bank, as well as its top finance regulators, are finalizing a report which lays out possible approaches for overseeing the tech.

Agencies involved in the development reportedly include the Reserve Bank of India as well as the Ministry of Revenue, Department of Financial Services and the Department of Economic Affairs.

What's happening: The report being developed could be as released as late next month, according to MoneyControl. 

Up for continued discussion is precisely how to approach regulation in India, including the question of whether a dedicated agency is needed for the job.

"SEBI (Securities and Exchange Board of India) can be asked to regulate virtual currencies as transactions are currently done through unregulated exchanges. RBI may step in if the government plans to regulate them or accept them as currency," an unnamed official told the publication.

How we got here: As CoinDesk reported in April, regulators are weighing the issue through the lens of consumer protection and combatting money laundering.

In May, the Indian government opened the process to public input as it moved ahead with its discussions. According to the MyGov site, nearly 4,000 comments were submitted in recent weeks.

During that time, digital currency startups in India spoke out about the process, calling on government officials to pursue an inclusive approach.

"We request the committee to give us an opportunity to meet them and showcase the benefits of this technology for our country," the Digital Asset and Blockchain Foundation of India said in a statement at the time.

Bombay high court image via Shutterestock