By Indian HODlers could have a reason to rejoice once more, as the country seeks to legalise cryptocurrencies. As per an announcement from The New Indian Express, a specific government committee has already met on a couple of occasions to discuss the matter, with a report to likely be submitted to nation’s Ministry of Finance early next month.
As per a source who spoke to the publication, the legalisation of digital assets can only occur under the strictest of conditions:
“We have already had two meetings. There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalised with strong riders. Deliberations are on. We will have more clarity soon.”
In addition to these meetings, the inter-disciplinary panel has also had consultations with crypto exchanges as well as industry experts and currently have plans set in motion to deliberate on legal matters with the law ministry.
The Blanket Ban:
India’s inter-ministerial committee was founded last year and is the country’s second one to have a core focus on cryptocurrencies. It was formed after India’s first government panel was created to address the issues surrounding cryptocurrencies back in March 2017 and went on to advise a total ban on digital assets in the planet’s second most densely populated country.
After this recommendation by the first panel, the Reserve Bank of India issued a blanket ban declaring all digital assets illegal. As a result of this, all regulated financial institutions were forbidden from offering any services to crypto-related businesses.
India’s current inter-ministerial committee was put into place after the country’s cryptocurrency ban was challenged in the Supreme Court.
Members forming part of the first committee included India’s Central Bank, The Reserve Bank of India, The Ministry of Finance, The Ministry of Home Affairs, the Ministry of Electronics and Information Technology, the National Institution for Transforming India, the State Bank of India and lastly, the Central Board of Direct Taxes. On the other hand, the second panel has members from all the abovementioned institutions as well as members from the Securities and Exchange Board of India.
India’s Crypto Apocalypse:
Following the government’s decision to implement the sweeping ban, many cryptocurrency firms had to close their doors and one key exchange which ceased operations was Zebpay in September last year.
As reported last year, the exchange cited the Reserve’s Bank’s decision as the source of their financial woes:
“The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business.”
Lastly, this is not the first time that a report has emerged in India which has generated hope for the legalisation of digital currencies. Back in the second half of 2018, it was reported that the inter-ministerial panel on crypto was in fact not in total favour of the complete ban on cryptocurrency and actually would have preferred an eco-system where the trading of cryptocurrencies was regulated.
Could India’s brash blanket ban be lifted in the near future? Let us know your thoughts by commenting below.
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