The Indian government is thinking about its Crypto ban. Moreover, the Government is forming a new panel to address the outdated recommendations on Crypto trading.
In addition, The Economic Times cited on May 19th reports that three sources are privy to discussion on forming a new panel of experts. This is also intending to regulate cryptocurrency trading in India.
Committee
Subhash Garg is the former finance secretary who led a committee in 2019. The committee is for a blanket ban on crypto-assets on the ground that they have become outdated. The government move comes amid increasing support for overturning recommendations made by this committee.
Blockchain
Governament uses the new panel to investigate the use of blockchain for technological enhancement. In addition, it also suggests ways to regulate Crypto assets separately from fiat currencies. Moreover, it may also work closely with the Reserve Bank of India on any proposed digital rupee project.
Anurag Thakur
According to the report, Anurag Thakur, the minister of state for finance and Corporate affairs, may be considering joining the new committee. Thakur and Finance Minister Nirmala Sitharaman have previously stated that the government would prefer to take a calibrated approach to regulate Crypto assets rather than imposing an outright ban.
Reserve Bank of India
The RBI banned all the banks from allowing their customers to trade in cryptocurrency in 2018. However, there was an overturn by the Supreme court in February 2020 following a petition filed by the Indian fintech entrepreneurs and experts.
Reports
Several reports are stating that a blanket ban would be re-imposed. In addition, the cryptocurrency and regulation of the official duty currency bill 2021 was scheduled to be addressed in the parliament in March. However, it was deferred for reasons not made public.
Sitharaman
Sitharaman’s team will brief her later this month regarding the ongoing development in the cryptocurrency space.
