Cryptocurrencies in India still under scrutiny
In India the situation has not changed much regarding the use of cryptocurrencies as the country enters 2019. The Central Banks and Governments are still cautious towards the development of the industry and may try to make things more difficult in the future.
The Country’s Government has given no specific time on the progress or lack of regulations towards cryptocurrencies. Most governments do not seen to be in any rush to finalise a timeline for a move towards clearer regulations and acceptance of digital currencies.
In a report coming from Quartz, the minister of state finance has said that:
“In absence of a globally acceptable solution and the need to devise technically feasible solution, the department is pursuing the matter with due caution. It is difficult to state a specific timeline to come up with clear recommendations.”
The state of the cryptocurrency industry in India remains unclear, according to a committe which includes members of Electronics and information technologies. There has been reports that said that the Reserve Bank of India, the Central Board of Direct Taxes, with the Securities and Exchange Board of India, has been established in order to form a study of all aspects and applicability of cryptocurrencies and assets like Bitcoin.
There is a draft planned for this month with the panel, which many hope will bring the legitimisation of cryptocurrencies in the country.
When the panel was questioned about the legality of crypto assets the minister added that:
“The government has not recognised cryptocurrencies as legal tender. The issue of permitting trading in cryptocurrencies is currently under examination by an inter-ministerial committee.”
The RBI has plans for Digital currencies but is on a stand still
According to reports, the Reserve Bank of India has been quite anti-crypto up until now, however, there are still plans to launch its own digital currency in the future. In April, there were considerations for the development of its own Central Bank Digital Currency (CBDC) after a series of crackdowns on exchanges across the country. The government does not want digital currencies any longer, as they think it might be too early for digital currencies widespread adoption. This was according to sources from the Hindu Business line.
The RBI seems to be more concerned with money laundering and cyber security threats than, what cryptocurrencies and the Blockchain has to really offer the world and society. Which puts them currently in a anti-crypto stands towards the development of this technology.
Central Banks have adopted these policies, as they think it is needed in order to control and monitor the flow of finance in and out of countries.
According to a report coming from the founder of the crypto exchange Belfrics, Praveen Kumar:
“It is premature for RBI to launch crypto-rupee’s, as more understanding of the crypto economy needs to be achieved. It is a right decision to delay the process and see how the publicly traded peer-to-peer economy is shaping up.”
The crypto industry has still not been a good one for cryptocurrency supports in India, where the progress and adoption of cryptocurrency is moving slowly.
What are your thoughts on the situation of crypto’s in India? Please feel free to leave a comment down below.