India’s RBI Crypto Ban Has New Regulation Draft Bill, Commodity Treatment Pending
India Is Not Banning Crypto Coins; They Could Treat Them As Commodities In The Country
A draft bill in India that will be handling the issue of crypto coins’ regulations is expected by this month, just to ensure it can shed more light to the current matter in the market.
An interview was conducted last month in ET Now, which is a television channel, with Subhash Chandra Garg who is a secretary in the department of economic affairs and is also the head of the cryptocurrency panel had a lot to offer. He said that the officials in the government are in the process of drafting the regulation that will be used in cryptocurrencies, which is expected to arrive by 15th July.
Just when all the investors in the market have been looking forward to India’s stand on the current virtual digital currencies, the latest report suggests it will still have a positive outcome. It suggested that India is actually not seeking to ban the crypto coins in the market, but instead, the government is looking for ways they will be able to treat them as commodities.
Just recently a senior official from the government anonymously told Quartz that the cryptocurrency would most likely not get banned from the country. As an alternative, the panel in the finance ministry is set to study them further and find ways to treat them as a commodity in the country.
He also added that he does not think anyone is thinking of ways to ban the coins. The issue at hand is finding ways they can regulate the current trade taking place, and also get a better understanding of where the money is really coming from. Thus, when they allow the crypto coins to be a commodity in the country, it will enable them to regulate the trade better.98
There Are Still Some Concerns From The Government On The Cryptocurrencies
The government of India still has some concerns about the crypto market. One of the critical worries they have is ensuring they can keep a tab on any illicit activities that might take place; this is like money laundering or even the financing of terror attacks that are currently taking place in the crypto market.
Trading is not really a criminal offence, as most people trade in various asset classes that are in the stock market. So the only thing to understand is how this crypto market is any different. What is needed is to have a mechanism in place to ensure the money that is used is not actually illegal money. Thus having a proper way of tracking the source is the first step to take, this is according to the official.
R Gandhi who is a former RBI Deputy governor expressed his view of the crypto market. He said that treating the digital currencies as just commodities in the country instead of actual real money will significantly help the officials in solving this issue.
He had also said previously that if they are used in the settling of transactions, then it will need to acquire the nature of currency, making it something to be wary about. But if investors are just looking to invest in a commodity, then this is a different factor, because at this point we can simply assume that the investor is aware of the risks that are involved.
But There Is Some Level Of Uncertainty In The Country
The Reserve Bank of India on April this year issued a circular that was asking all the registered bank institutions in the country to ensure they have cut their ties with the crypto exchanges. And soon after this, it was followed with a severe backlash from the exchanges and investors in the market who took the matter ahead to the supreme court.
Currently, the supreme court has just issued a stay on the current order of the RBI. But things should become more evident after the scheduled hearing this month. Thus, there is a lot of things that are expected to get clearer by the end of this month. As a result, we are hoping that India will adopt appropriate crypto regulations just as their Asian counterparts have done it.