To regulate or not to regulate.
The discussion regarding the legal stance of digital coins like Bitcoin and other altcoins has been around for some time.
In 2018, the Reserve Bank of India (RBI) announced to all its regulated entities, including banks, to cease services to individuals and businesses dealing with bitcoin and other virtual currencies.
The Supreme Court March 2020 revoked the ban of cryptocurrency imposed by the Reserve Bank of India (RBI) in 2018.
Why is Crypto Regulation Important in India?
It is no secret that the Cabinet has been considering the cryptocurrency bill. With 15 million Indians now trading in digital coins, crypto investments have grown from around $200 million to nearly $40 billion in the past year, as per Chainalysis.
This almost puts India in the same league as the US where 23 million people trade in cryptos. At this point, the lack of legal clarity seems to be the only thing stopping a cryptocurrency revolution in India.
So, it has become paramount to regulate cryptocurrency in the country.
Most Recent Update on The Cryptocurrency Regulation in India
India is closer to getting cryptocurrency regulations than ever before with a more positive message from the government.
On November 15th, the Parliamentary Standing Committee on Finance invited cryptocurrency industry players for a meeting. The agenda of the meeting was to discuss opportunities and challenges in the crypto industry. The panel was headed by BJP leader Jayant Sinha, who is also a former Minister of State for Finance.
Representatives of crypto exchanges, Blockchain and Crypto Assets Council (BACC), industry bodies, and other stakeholders were also a part of this meeting.
This was India’s first-ever parliamentary discussion of the subject of crypto finance involving the industry. Even Prime Minister Narendra Modi chimed in on the discussion and shared his thoughts on Twitter.
What is the final verdict?
The government or the RBI has not given any final answers regarding the regulation of cryptocurrency. However, the Centre is in a rush to clear the picture and provide a legal framework. Several news outlets reported that the government could introduce a cryptocurrency bill during the winter session of parliament. But India continues to trade in crypto while waiting for the regulation.
A country with a 7 billion population has much to gain from legalizing bitcoin or any other cryptocurrency. So, it is all up to the government and the leaders of our country to decide if India will be a part of the crypto revolution or not.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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