Crypto regulations in India are yet to be finalized and have many updates to follow. It was earlier speculated that the regulations will be officially announced by the first half of the year. However, as per the recent update it is stated that it isn’t coming out any sooner and will certainly be announced by the end of this year. The panel of finance ministry is still evaluating the inception of blockchain and crypto coins in a separate manner.
The government is eager to implement the encryption based technology within their systems but refrains to talks about cryptocurrency. It seems that the main concern is how to execute crypto regulations without affecting the usual trade of the market. The Reserve Bank of India has denied accepting cryptocurrency in their payment system and has withheld their transactions from any financial institution in India.
According to Quartz, it is stated that the most prominent issues with the matter is the independent usage of the blockchain, which is a digitized and decentralized public ledger for the cryptocurrency. Removing the financial application from it will make it a simply a bookkeeping record which is accessible from anywhere and anyone on the network. The government officials are trying to understand its usage sans cryptocurrency which indirectly means a significant delay in the crypto regulations implementation.
Cryptocurrency Ecosystem In India
The government is hesitant in implementing crypto trade as it will rope in a huge amount of black money in the market. Since Modi government has been adamant on curbing black money ever since they came in power, accepting cryptocurrency is just out of their case. But the demand for crypto trade made the government to give a thought that led to the creation of a committee which is studying the execution, regulations and effects of crypto trade in India.
The crypto exchanges have also filed a petition against the crypto ban imposed by the Reserve Bank of India which is impending for the final hearing next month.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]