Similarly to China, India has made moves to ban cryptocurrencies, but unlike China, India is reconsidering. Months before, the Indian government had hinted at a possible ban. Following this, a series of warnings were issued, urging people to withdraw from cryptocurrency before the ban was implemented. Currently, things are taking a different turn as the Indian government takes a more measured approach to crypto.
Major Updates
- The Indian government will establish new crypto regulatory systems.
- Subhash Garg proposed establishing a cryptocurrency regulatory body in 2019.
- Anurag Thakur will join the new cryptocurrency panel.
With the rise of a newly formed regulatory system addressing crypto trading in India, many reports have emerged that the Indian government may be reconsidering its stance on cryptocurrencies.
The new regulatory system was first discussed in the Economic Times on May 19. It has been suggested that this new panel will handle cryptocurrency trades in India.
The new reforms stem from recommendations made by Subhash Garg, a former finance secretary, in 2019. He explained that a complete ban on cryptocurrencies in India was an outdated viewpoint, necessitating the need for a more expert-based viewpoint. This would be required in order to properly handle and comprehend the concept of digital money in India.
Although no specific functions of the new panel have been disclosed, it is assumed that operations will revolve around expert-based knowledge of Blockchain technology and cryptocurrencies, as well as the study of digital advancements and how to use them to benefit the Indian economy. In addition, it may collaborate with the Reserve Bank of India on digital money projects.
Concerning the members of the new panel, it has been reported that Anurag Thakur, Minister of State for Finance and Corporate Affairs, may be on board. Thakur and Finance Minister Nirmala Sitharaman discussed the government's preference for this approach over an outright ban on crypto assets.
Conclusion
The new Cryptocurrency and Regulation of Official Digital Currency Bill 2021 are almost ready to go live. Regardless, crypto interest is skyrocketing in India.
Question of the Day
What do you think of India's new Crypto Panel?
