Indian Government Panel Postpones Regulation of Cryptocurrency
When it comes to assessing cryptocurrencies and deciding which category of assets they fall into (i.e. commodities, securities or currency), India is clearly not the only country who’s facing problems. This is not to say that the country is also doubting the likes of the blockchain technology, as many countries do see potential in the positive impact it can make in traditional practices.
The problem, at least for India, is finding ways to disassociate cryptocurrencies from blockchain and having a complete understanding of the digital assets. According to a state official, who prefers to remain unnamed, Bitcoinist shared that,
“There are lots of issues that need understanding and lots of studying needs to be done. Blockchain is an interesting thing. We definitely want to milk it effectively for financial transactions,” adding that the main problem is finding was “to separately use blockchain, without cryptocurrency. And understanding anew software takes time.”
The fact that the government would prefer to accept blockchain on its own and shut down the idea of cryptocurrencies altogether is not sitting well for many investors. India’s perspective of just focusing on the technology is not new, as several leaders have expressed something similar.
Leader of a Bitcoin Lobbyist Group based in India, Ajeet Khurana believes that a public blockchain is required “to have a token and you can’t have it by excluding cryptocurrencies.” Khurana also compares blockchain technology to the internet, which symbolizes the lack of control.
India has had backlash from the crypto sphere because of its RBI Ban, which prevented banks from conducting crypto transactions. While it was revealed that the government will reconsider the ban, the final say will only be made on September 11, 2018 – until then the ban still remains.
Since the state official seems to emphasize the need for understanding, it wouldn’t be a surprise if the decision gets postponed yet again. Will India finally turn down its current decision on cryptocurrencies and support its likes?