The leading Financial media Economics Times reported today morning that India’s government is reconsidering its stance on cryptocurrencies with the formation of a new regulatory panel.
Indian Government cites that the earlier recommendations made by a committee headed by former finance secretary Subhash Garg in 2019 for a blanket ban on crypto-assets had become outdated.
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The report quoted an unnamed official with knowledge of the matter who stated:
“There is a view within the government that the recommendations made by the Subhash Garg are dated and a fresh look is needed at the use of cryptos rather than a total ban,”
A new panel will be formed to investigate and explore the use of blockchain for technological enhancement and suggest ways to regulate crypto assets separately from fiat currencies. It may also work closely with the Reserve Bank of India on any proposed digital Rupee project.
India’s crypto stand is a long-term pending debate. In 2018, RBI had banned all banks from allowing customers to trade in cryptocurrency that was later ruled out by the Supreme Court in February 2020 following a petition filed by Indian fintech entrepreneurs and experts.
From the starting of 2021, multiple rumors have been spread in media that a blanket ban would be reimposed by an anonymous source claiming to be a senior Indian Finance Ministry official.
The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 were scheduled to be addressed in parliament in March but it is delayed due to the current pandemic situation in the country.
Sitharaman, finance minister of India, is expected to be briefed by her team later this month regarding ongoing developments in the cryptocurrency space and collective breaths are being held again in Indian crypto industry circles.
Despite all this drama, the Indian crypto industry is flourishing with innovative startups disrupting the crypto space, like Polygon (Previously Matic Network) made headlines being one of the most innovative startups this year with a total market cap reaching over $14 billion in just 3 years of its start.
At Blockcrunch, we believe that there is an enormous potential in the Indian startup ecosystem to build world-class products and technologies in the blockchain and crypto space and hence Indian government and regulatory bodies should involve and take feedback from entrepreneurs in this space while policymaking decisions.