As per government official involved in the regulatory panel, to examine cryptocurrency panel, India is not on stance to ban the cryptocurrency usage completely and stated that
“I don’t think anyone is thinking of banning cryptocurrencies altogether. The issue here is about regulating the trade, and we need to know where the money is coming from. Allowing it as a commodity may let us better regulate trade, and so that is being looked at“
As reported earlier, Reserve Bank of India (RBI) had banned all the registered financial companies not to provide any cryptocurrency services to customers using through their bank accounts with effect from July 5th. Now the question comes as to what is the next step in solving this puzzle.
Interestingly the country wishes them to treat it as a commodity. On the similar lines, Coindelta co-founder, Shubham Yadav said,
“Though cryptocurrencies belong to a new class of financial assets, we can still welcome them as commodities and not currencies because of their [highly] volatile prices. Many countries have been already going in this direction, including the U.S.“
The only concern what the committee is looking forward is money trail involved in the transaction. So ideally, the committee is keen on regulating the cryptocurrency in an effective manner. Commenting on that topic the government official said that,
“Trade is not a criminal offense. Most of us trade in various asset classes in the stock market. So how is cryptocurrency trading any different? What has to be in place is a mechanism to be sure that the money used is not illegal money, and to track its source is the most important thing.“
Since the announcement of the ban, trajectory of Indian crypto market has changed drastically. But the question arises as to what impact will it have on Indian market as well as the crypto market on a global level.
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