Cryptocurrency in India is lagging far behind other Asian countries which have legitimized digital currency such as Bitcoins and Ethereums. The trade continues to operate in India also but it remains in the grey area as the government has not yet accepted them. In fact, the entire crypto trade is getting murkier for cryptocurrency exchanges and their stakeholders as the Reserve Bank of India has stated under the current provisions and laws no such form of currency is accepted in Indian payment system.
According to Entrepreneur, it is mentioned that the RBI presented this fact in their affidavit which was submitted to the Supreme Court lately. However, in their counter-response, it was noted by the petitioners that the entire cryptocurrency model relies on peer to peer method which does not even require a service provider for their operations. Cryptocurrency in India was banned at the beginning of this year by RBI fearing the intrusion of black money in the trade market. The final judgment on the filed petition is likely to be unveiled on September 17. (Via Lastly)
How To Handle Cryptocurrency In India?
Belfrics Group Founder & CEO, Praveenkumar Vijayakumar mentioned in his statement that RBI’s existing affidavit intimates for a need of modifying the current laws which can accommodate cryptocurrencies. He also added that it is not just the case with India there are many countries which do not have any clause and provisions for the digital currency. There is a requirement of additional laws and relevant provision.
A new asset class has to be addressed along with the rules to lay the foundation of cryptocurrency in India. If all the current rules and regulations of SEBI or even RBI are imposed to it, then there will be too much confusion over the authority and their operations. There is a need for a new regulatory committee which probably can be a melange of both technologists and lawmakers to find the best possible way out.[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. ]