India could be having a change of heart moment in crypto, a report says the Indian government considering crypto regulations instead of a ban. The central government may form a fresh panel to study the possibility of regulating cryptocurrency in India, Economic Times reported.
The move comes amid a prevailing view that recommendations by a committee led by former finance secretary Subhash Garg. The committee in 2019 suggested that “blanket ban on these assets had become outdated.”
The new committee will utilize blockchain for technological enhancement and suggest ways to regulate cryptos as digital assets instead of currency. A committee may work closely with the Reserve Bank of India’s proposed digital rupee.
“There is view within the government that the recommendations made by the Subhash Garg committee are dated and a fresh look is needed at use of cryptos rather than a total ban,” said an official.
Though discussions are at an early stage. They didn’t pass any formal resolution yet. The Finance Ministry is already talking to stakeholders on potential supervisory risks. Minister of State for Finance and Corporate Affairs, Anurag Thakur, earlier met with members from crypto and banking industry forums.
In recent months, both Finance Minister Nirmala Sitharaman and Anurag Thakur publicly said that the government would take a “Calibrated” approach to regulate cryptocurrency rather than ban it.
In 2021 Cryptocurrency and Regulation of Official digital currency bill scheduled in the budget session of parliament in March. However, it was delayed for a reason not made public. The bill might schedule for the next monsoon session.
In 2018 RBI had banned all banks from allowing customers to trade in cryptocurrency. However, Indian crypto entrepreneurs and technology and internet industry association IAMAI filed a petition to remove that ban in Supreme Court. Supreme Court overturned the ban in February 2020.
