After actively discussing placing an all-out ban on the crypto industry, the Indian government is now reportedly reconsidering a change in tactics. More recent reports claimed that the nation had formed a new panel of experts to implement more precise regulations on cryptocurrency trading.
Change of Heart in India?
The world’s second-most populated country has been indecisive in its cryptocurrency endeavors for years. Back in 2018, the Reserve Bank of India banned all companies working with it from operating with digital assets. Two years later, the country’s Supreme Court reversed the decision.
Although Indians showed significant interest in the industry, the authorities continued to hint about inserting a blanket ban. Back in March, reports emerged indicating that the country planned to criminalize interactions with bitcoin and other altcoins.
With some institutions opposing such harsh measures, India’s government could be changing its mind, according to coverage by The Economic Times. Citing three sources privy of the internal discussions, the report noted that the authorities “may form a fresh panel of experts to study the possibility of regulating cryptocurrency in India” instead of banning them.
The new initiative plans to address the recommendations made by the former finance secretary Subhash Garg in 2019. Back in the day, the official advised the government to ban users from interacting with digital assets. However, the new committee sees his vision as “outdated.”
“There is a view within the government that the recommendations made by Subhash Garg are dated, and a fresh look is needed at use of cryptos rather than a total ban.” – commented a source familiar with the matter.
Digital Assets Instead of Currencies
The sources further asserted that the finance ministry had changed its stance following the massive surge in trading volume as locals have increasingly become more involved with the crypto space.
Furthermore, the committee will reportedly work on utilizing blockchain for “technological enhancement” and will propose new ways to regulate cryptocurrencies as digital assets instead of currencies.
The committee’s additional plans include working with the nation’s central bank on developing and launching the recently proposed digital rupee (CBDC).