Could India potentially put an end to its present crypto ban? According to the New India Express, the answer might be “yes.”
The publication recently stated that an interdisciplinary committee created by the Indian government has had several meetings regarding cryptocurrency activity in the country and is allegedly in favor of both regulating and legalizing cryptocurrencies rather than fully banning them.
Will Crypto Come Back to India?
An anonymous senior official explained to the publication:
“We have already had two meetings. There is a consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on.”
India first sought to ban the sale and trades of cryptocurrencies in April of 2018. The nation’s central bank – the Reserve Bank of India (RBI) – made the announcement in its first policy statement for the fiscal year, citing volatility and cyber theft as the primary reasons as to why banks would no longer be permitted to work with firms or agencies that dealt in cryptocurrencies.
The bank stated:
“In view of the associated risk, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or selling [virtual currencies].”
Many blockchain and crypto-based businesses took offense to the notion of a potential crypto ban throughout the country. Sathvik Vishwanath – co-founder of Unocoin – explained:
“No other player in India was foreseeing this, and it comes as a shock. People are trying to exit as they feel they won’t be able to cash out after three months. Selling volumes in bitcoin are as high as 1.5 times in a single day and the price has gone down by ten percent of what it should ideally be.”
This presents something of a two-sided coin in the sense that while the ban was set in motion roughly eight months ago, the interdisciplinary committee was created just a year earlier. Why would India design a body to manage cryptocurrencies if it was planning to shun them?
The organization is composed of representatives from other government associations, banking platforms and “relevant agencies.” Allegedly, the committee’s original goal to was to ban private currencies circulating regularly in India, though this stance appears to be softening.
Another meeting is already scheduled for January. The Committee has also been ordered by the country’s supreme court to provide clear legislation regarding cryptocurrency exchange operations by February of 2019.
Moving Forward in the Crypto Space
The anonymous official explains:
“We have also taken inputs from cryptocurrency exchanges and experts and we will be examining legal issues with the law ministry. It’s a complicated issue. Once all aspects are decided, then we will have more clarity.”
Will India move forward with allowing crypto trades? Post your comments below.
Image courtesy of Shuttershock
