The Indian government has long been indecisive about regulation with respect to the cryptocurrency industry.
In April of last year, the Central Bank of India banned all financial institutions under their control from servicing crypto-related businesses. Crypto ATMs have previously been banned in the country, rumors of the central bank issuing their own cryptocurrency have been botched, and crypto businesses have been forced to shut down.
Despite all these negative happenings in the Indian cryptocurrency industry, there has been much speculation about the country legalizing cryptocurrency.
Now, as of February 25, the Supreme Court of India has reportedly given the Indian government 4 weeks to come up with cryptocurrency regulations, according to Crypto Kanoon, a platform for blockchain regulatory news and analysis who shared this news via Twitter.
Supreme Court has granted 4 weeks to Indian Government as the final opportunity to bring about a policy (Rules and Regulations) on Crypto currencies!
For details, please watch this video both in Hindi and English. https://t.co/R8E5wuGPHJ
— Crypto Kanoon (@cryptokanoon) February 25, 2019
Reserve Bank of India (RBI) Ban to be Reviewed this Week
In addition to the 4-week deadline to establish clear cryptocurrency regulations, the Supreme Court of India will also hear petitions against the crypto banking ban by the Reserve Bank of India (RBI) this week.
The last time this case was addressed was on January 17 and some crypto businesses were forced to shut down due to banking restrictions. One of the petitions which will soon be reviewed comes from the Internet and Mobile Association of India (IAMAI) which is members with a number of local crypto exchanges.
Their petition urges the RBI to lift the ban as it is unconstitutional, hurting local businesses and preventing innovation in the Indian economy.By reviewing the petitions, the hope is that the Indian government will take the petition’s points into consideration when establishing cryptocurrency regulations.
According to reports by Coin Crunch India, the government of India has been working on the regulation of cryptocurrencies for some time now. It’s also been reported that the Finance Ministry has appointed Subhash Chandra Garg, Secretary of Economic Affairs, to draft the regulation which reportedly is already being finalized.
However, though the regulations have probably, for the most part, been decided on, it is unclear as to what they entail.
Considering that the industry continues to move forward in a positive light as governments and regulators learn more about blockchain technology and crypto, it’s probable that regulations foster crypto innovation rather than outlaw it.
Do you think India will legalize cryptocurrency? Let us know what you think in the comment section below.