India is a step closer to the full adoption of Cryptocurrencies
Adoption of Cryptocurrencies – After a lot of cryptocurrency-related debates, mainly regarding the “dangers” of unregulated crypto markets, such as the potential of cryptocurrencies being used to facilitate money laundering or fund various criminal organizations, the Government of India seems to be ready to regulate cryptocurrencies. On the other hand, it seems like the Indian Government is fully aware of the long-term inevitability of cryptos.
The matter was discussed on November 13 and there are chances that a bill regarding cryptocurrencies will be introduced in the upcoming Winter Season of Parliament.
A meeting chaired by Prime Minister Narendra Modi focused on cryptocurrencies and revealed that the government is seriously concerned that dangerous elements are manipulating young people with “over-promising and non-transparent advertising”. This must be stopped, was the conclusion of the authorities. The review meeting was followed by months of elaborate consultations involving the RBI (the Reserve Bank of India), the Ministry of Finance, the Ministry of Interior, and cryptocurrency experts from India and abroad.
Adoption of Cryptocurrencies – In the meantime, a parliamentary group discussed the fate of cryptocurrencies in India for the first time, and they came to a consensus that cryptocurrencies could not be stopped, so they should be regulated. The Standing Committee on Finance, chaired by former Finance Minister Jayant Sinha, invited a wide range of stakeholders from the crypto industry, including stock exchanges and industry bodies. Prior to the meeting, Sinha told the media: “We have called stakeholders from across the industry including operators of major exchanges, members of CII as well as academics from the Indian Institute of Management (IIM) Ahmedabad, who have done a very thorough study on the crypto finance.”
Finding a common denominator
Although there seemed to be a consensus that a regulatory framework should be provided for the smooth and legitimate functioning of the country’s cryptocurrency industry, there was no unanimity as to who the regulator should be.
There is a consensus that unregulated cryptocurrencies should not have the liberty to be used for laundering money and financing terrorism. The government is a little outdated and fears “evolving technology”, and thus came the decision to remain vigilant and take “proactive steps”.
These developments came even when a UK survey, conducted just before the 26th UN Climate Change Conference in Glasgow, Scotland, revealed that the majority of the UK population wanted a ban on cryptocurrencies.
Unlike the United Kingdom, however, there is no indication that Indians want a “ban” on cryptocurrencies. The Modi government has said it has a “forward-looking progressive” approach and will also connect with international partners, apart from engaging with stakeholders in India.
The RBI has consistently warned against cryptocurrencies, urging that they pose a serious threat to India’s economy and financial system. The Indian central bank is not convinced by the overly ambitious claims and alleged market value of the crypto markets. The RBI is against allowing cryptocurrencies, whether regulated or unregulated. An internal RBI report on the subject will be published in December.
Adoption of Cryptocurrencies – Solving things in a beneficial way
In any case, the government will not make an all-or-nothing decision. “Strong regulatory steps” are more likely to be close to completion. The words “progressive and forward-looking” indicated the government’s mentality on this issue. The fact that cryptocurrencies stretch across geographical borders cannot be ignored. The whole planet is interested in the matter and thus the most frequently used practices will have a say.
Adoption of Cryptocurrencies – The indications are that the government wants to develop a digital currency policy that will stand the test of time. India’s crypto future will be tied to a strong legal framework.
“Collective strategies” and “global partnerships” are frequently pronounced together with “proactive engagements”. It is clear that the government has realized that there is no avoidance of cryptocurrencies. The interests and intentions of people have become very well understood. The RBI expressed its opposition to the Standing Committee on Finance, which met on 15 November. However, even the Indian government seems to think that the RBI is too stubborn. It is clear that the Modi government does not want a China-like ban on cryptocurrencies.
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