India to rethink stance on cryptocurrency

India Swiss Bank

TL;DR Breakdown

  • India may rethink its rigid regulation around crypto
  • Country also looking at improving on its CBDC

India may be having a rethink on its stand on cryptocurrencies. This is according to a new report that suggests regulation rather than an outright ban on digital assets,

The report is an aftermath after an actively discussing placing a ban on crypto and is looking at adopting a new strategy. Speculation has it that the nation had formed a new panel of experts to implement more precise regulations on cryptocurrency trading.

India’s new strategy

The new initiative aims to address recommendations made by the former finance secretary Subhash Garg in 2019. He advised the government to ban users from interacting with digital assets, which the committee set to address.

The Economic Times reports on Wednesday citing sources close to the committee. They note that a new panel of experts may be formed to study how regulating crypto in the country would play out rather than placing a ban.

Over the years, has not taken a particular stance on crypto. The country’s apex bank, the Reserve Bank of India, placed a ban on all firms that work with it from providing support for crypto. In 2020, the country’s Supreme Court overturned the ban. A win for the Indian crypto community back then.

Locals in the country continued to show strong support and interest in the digital asset, and authorities began mulling a blanket ban. In March, there were rumors that India plans to criminalize transacting with cryptocurrencies.

CBDC among options on table

The new committee is looking at utilizing blockchain for technological enhancement, and afterward, they propose how cryptos can be regulated as digital assets rather than currencies.

The additional assignment for the committee is working with the Reserve Bank to develop and launch the proposed digital rupees. According to the Economic Times, the finance ministry is on the side of the crypto industry after trading volumes skyrocketed and increased activity in the crypto space by Indians.

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