The RBI famously banned crypto efforts and mining not long ago, but they may be changing their tune. Subash Chandra Garg, who is the secretary of the Department of Economic Affairs in the Indian government, decided to go over a petition that is against the ban. The new hearing will take place on July 3rd.
To further explain his stance on this matter, he said,
“We are fairly close to developing a kind of template which we think might be in the best interest of our country. We have prepared a draft which we intend to discuss with the committee members in the first week of July.”
Since the original ban, the government has continued to research this concept through the ban. As a result, much of the reason for the willingness to review the petition seems to be their better understanding of what aspects “should be banned, what should be preserved, and what not.”
Garg has noted in earlier statements that cryptocurrencies would not be accepted as currencies by the Indian government, since they don’t plan to make them a part of the currency system. Even though the ban has continued so far, Garg understand the changes that need to be made to keep up with the needs of the economy, considering how many people find crypto beneficial. One of the major changes that would need to happen is the establishment of certain legal regulations, since crypto exchanges are not founded in the country. One such regulation would require a transaction record.
Cryptocurrency has caused quite a stir between exchanges and Indian lawmakers. The finance minister, Arun Jaitley, reiterated to consumers that cryptocurrencies are still not allowed as legal tender, which means that local citizens should be aware that they’ll be at risk for legal action. Recently, the Income Tax department warned crypto users that they were at risk for tax evasion by “hiding” their “income.”
When the initial ban started, local financial institutions were only given three short months to adhere to the new regulations. However, since then, the Reserve Bank of India responded to a startup consultant’s comments by saying that they did not give proper guidance after this notice went out.
While the financial institutions prepared, local crypto exchanges also worked to get their ecosystems ready by eliminating their fiat deposits and withdrawals. Instead, they’ve focused on launching new tokens and making their crypto-to-crypto trading options more expansive. Many crypto companies fought back by filing petitions against the ban, though they were unable to get a hearing until July 20th.
With the date bumped up to the 3rd, local exchanges and investors will have an answer much sooner.