India Consults Stakeholders Related to Cryptocurrency Ban
Godfrey Benjamin Jun 17, 2021 08:25
The Indian government is exploring an alternative approach to handling digital currencies, rather than a blanket ban.
Indian central government and its monetary authority, the Reserve Bank of India (RBI), is reportedly taking steps to analyse the clause of the previous plans to ban digital currencies in the country.
According to BloombergQuint, the central government talks to key stakeholders to review the "Cryptocurrency and Regulation of Official Digital Currency Bill, 2021".
Under the ongoing review, the authority considers three key aspects cited by the BloombergQuint report. The first two around whether new rules can be enacted to accommodate cryptocurrencies. The authorities are trying to explore which areas or types of crypto-related activities to permit or ban entirely.
The new approach to tackling cryptocurrencies comes after several bans that have not been implemented. Meanwhile, the threat of clamping down on cryptocurrencies persists in Asia; cryptocurrency-related activities have not really toned down. Perhaps, the new approach to tack cryptocurrencies is based on the fact that the government is not oblivious to the many local crypto dependents that the ban will impact.
Recently, when the ban on crypto surfaces, the Indian Supreme Court always revert the prohibitions. The crypto regulatory terrain in India is somewhat confusing when the government recently clarified its stance about the latest ban, pointing out that old circulars been cited by financial institutions for not providing services to crypto exchanges no longer holds.
Although other nations are also notably anti-crypto, India embraces crypto with an open mind attitude than other nations do, exploring with a welcome progression for the growth of the digital currency ecosystem in the country.
However, the clause-by-clause analysis of the crypto bill and the proposal for a new one may not be ready during the upcoming Monsoon Session of the Parliament. Nevertheless, scraping the plans to ban crypto officially will mark a new paradigm shift for the growth of crypto in India and the global ecosystem at large.
Image source: Shutterstock