High hopes for cryptocurrency regulations in India meet disappointment
The already damaged cryptocurrency space in India further gets doomed as an MP affirms that a ”specific timeline” for regulation will not be out soon. In a Parliamentarian session, Pon Radhakrishnan, the Member of State [MoS] for Finance has clearly voiced out the governmental stance saying, ”It is difficult to state a specific timeline to come up with clear recommendations,” for the cryptocurrency regulations.
With this statement, it has become clear that the central government with the Prime Minister Narendra Modi at the forefront continues to remain stringent towards the entire crypto community, trading platforms and investors. The current stand of the Government of India reached out to the crypto community that it will neither frame or finalise any norms in near future nor will it fix a deadline to roll it out. “In absence of a globally acceptable solution and the need to devise technically feasible solution, the department is pursuing the matter with due caution,’‘ said the MP.
However, in November 2017, the government initiated to take a step toward setting guidelines for regulating digital assets in India by forming a committee. A draft report on cryptocurrencies such as Bitcoin was likely to be submitted in this month to the panel, which ultimately met failure. It was expected that following the submission, the findings would be discussed in a meeting at the beginning of the year.
The ambiguous stand of the government
The lack of regulations has kept the investors away from entering the crypto domain in India. Besides, the government has also maintained an ambiguous stance towards the entire matter. On one hand, in October the government claimed to impose ban on the entire crypto industry from operating within the territory and on the other hand, legal documents in November revealed that the government is considering the decision whether to ban or frame regulations.
However, in this respect the central bank of India has been consistent with its stand. The Reserve Bank of India has rolled out a circulation forbidding the banking institutions to entertain companies dealing with virtual currencies along with crypto exchanges and traders in July.
Image via Shutterstock