India’s RBI Admits to No Research or Expert Insight Before Crypto Ban Ruling
Cryptocurrency in India Must Be Regulated States India’s Largest Bank
In a twist of fate for cryptocurrency, the recent ban by India’s Central Bank against cryptocurrencies has been miraculously turned around. Friday set the date for the supreme court hearing on the state of cryptocurrency in the country. Surprisingly, the bank requested immediate regulations be set in place on all cryptocurrencies in the country. The request to regulate cryptocurrency was a major shock, and likely relief for cryptocurrency investors across the country, who were likely preparing a retaliation against the recent ban set in place against cryptocurrency platforms.
After all, it was only this last April that the RBI placed a circular, putting an immediate halt on all cryptocurrency trading in the country. The change happened when the Royal Bank of India admitted to performing no research or analytics into the proposed ban, which even stopped trading inside banks and financial institutions within the country.
Not only was trading banned, but so was any type of assistance to cryptocurrency companies or enthusiasts. It basically made any type of association with cryptocurrency illegal – shutting down the trade in the country – at least on the surface of legal sectors.
The bank changed opinions after realizing they held a sort of responsibility to the country and its people when it comes to installing regulations on currency of any type, even if it is digital. The new ruling will be completed through the countries Parliament, instead of within arguing legal battles. It’s a smart move, considering the nature of cryptocurrency. By shutting down trade of it entirely, the country only forced investors and companies to go underground, which always leads to more shady and illicit behaviors than is desired.
The country will now have real exchanges operating in its borders. The need for regulation on cryptocurrencies in any country with an already existing community is essential. Without it, scams, frauds and theft go undetected or investigated, making the market scary to invest in and dangerous. Investors become more hesitant, thereby devastating the local cryptocurrency community or shutting it down outright.
But with regulations, illegal transactions of cryptocurrencies like Bitcoin, Ethereum and Ripple become less attractive or needed. The resolution between the state, banks and cryptocurrency users will cause better trade ethics to stop illicit activities involving cryptocurrency or at least significantly reducing them. It’s a smart move by the Royal Bank of India, showing more enthusiasm to work with the people of the country, so India can finally gain a stable financial foot hold on the world.
Like several other countries, new committees will likely develop to manage cryptocurrencies in the country. Possible talk of classifying them as commodities rather than currencies will also have a powerful effect on how they’re viewed, handled and exchanged. Labeling cryptocurrencies as long-term investment commodities instead of short term currencies for every day use is becoming more and more common, also making the currencies more stable to hold for investors.
Is the change of heart by the Royal Bank of India a smart decision on their behalf? And how will this effect the rest of the crypto-sphere? Leave your opinions in the comment section below.