(Via ZEXPR) There has been a load of speculation about India’s stance on the cryptocurrency market. While the digital coin continues to boom, there is one country that has openly expressed scepticism against getting on the bandwagon.
However, recently the government of India hinted against the blanket ban on cryptocurrencies, much to the pleasure of the Indian crypto industry that definitely credits this to their constructive engagement with the government.
Crypto enthusiasts for a long have lobbied with the government to reconsider the proposed ban on cryptocurrencies and has even argued to the extent that private cryptocurrencies can exist in peace with a sovereign digital currency as long as they are defined as digital assets instead of private currency.
While this has helped boost Indian blockchain startups, this is still a good sign that brings a lot of hope for the digital currency considering the expansive market that India holds. The Investment Center broker Andy Klein further explores the narrative that would enable Indian investors to enter the cryptocurrency world.
The Prospect For A Green Light
The reason this news is catching fire is that on Friday, Indian Finance Minister, Nirmala Sitharaman spoke to their native business channel to give a little perspective to Indian investors regarding the government’s stance. She relayed that the government will “calibrate” its position on crypto in order to ensure that there is an opportunity available for “all types of experiments in the crypto world”.
Even though she didn’t confirm any decision by the government but this open stance has been enough surety since she did reiterate that there “a lot of negotiations and discussions that are happening around cryptocurrency with the Reserve Bank of India”. However, from the looks of it, the country is serious about the regulation of the blockchain currency.
Sitharaman added that they are not closing their minds to this idea and are “certainly looking at ways in which experimentations can happen in the digital world, cryptocurrency and so on”.
She ended by stating how India’s Central bank will be taking the final call on the kind of unofficial cryptocurrency that will be planned and how it will be regulated.
An Opening For Blockchain Tech
This does come as a surprise ever since the Indian Parliament postponed the amendment of the “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” in January.
The bill had sought to ban all “private cryptocurrencies”, except a few unnamed exceptions, in order to in a way, “promote the underlying technology of cryptocurrency and its uses”. It further planned to introduce a framework for the Central Bank Digital Currency (CBDC).
The Investment Center broker Andy Klein reflects on the implications faced by the Indian crypto industry and states, “This definitely set back the industry’s progression into the advancing cryptocurrency world as the draft bill did exempt the blockchain technology itself but maintained a strong stance against other cryptocurrencies.”
Ever since the announcement of the draft bill, several leading industry leaders have come together to exercise a coordinated movement against the ban and have advocated for the regulator approach instead. And ever since Sitharaman’s statement, the industry has been able to breathe a sigh of relief – because at least now there is newfound hope.
No Possibility For A Full Ban Anymore?
Several members of the Indian crypt industry has taken Sitharaman’s statement as a good sign and this is true because they were gearing for a blanket ban on cryptocurrencies.
CEO of crypto exchange WazirX, Nischa Shetty saw the finance minister’s statement as a clear sign that the government is taking them into consideration. He and others in the crypto industry have for long been campaigning against the ban which is why they are ready for the next step.
He spoke briefly about how the government should involve the crypto industry in the policy-making process as it will help “formulate the right crypto regulations in India”.
CEO of the Indian crypto intelligence firm CREBACO, Sidharth Sogani credited the industry’s persistent dialogues with the government for this change in perspective for it was very evident that they were headed towards a blanket ban on cryptocurrencies.
While many were still doubting the vague comments from the finance minister, Sogani believes that there is hope since there won’t be any chances of an “all-out restriction” for the government has showcased genuine inquisition in the matter. This definitely puts it in perspective that the government is paying careful consideration with a solid regulatory framework in mind.
The Investment Center broker Andy Klein identifies the current global trend for cryptocurrencies as an open opportunity for the country to open its market to the crypto world.
But whether it’s the global influence of an intrinsic play by the government, the latest announcement has definitely calmed India’s crypto industry.
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