India is not Banning Cryptocurrency After all Despite Negative RBI Stance
There have been a lot of interesting cryptocurrency-related developments in India over the past few years. Primarily the confusion regarding the regulation of the industry or even potentially banning it has created a few interesting debates. It now seems there is no plan to ban Bitcoin and altcoins in the country, although there could still be restrictions down the line.
It is good to hear the Indian government has finally made its stance on Bitcoin and altcoins clear. After years of uncertainty and speculation, there will be no ban for any cryptocurrency in the foreseeable future. That doesn’t mean that plan will not be revised in the near future, but for now, the stance will remain in place. This is good news for all domestic companies providing some form of cryptocurrency service or product. Especially the numerous exchanges in the region will be quite pleased with the news.
There is a very big difference between regulating an industry and prohibiting all activities. In the cryptocurrency world, it seems there is plenty of overlap between the two, albeit that is not always the case. In India, the government will effectively monitor the crypto industry and draft specific laws for all activity in this particular market. That should be considered to be a good thing, as regulation brings legitimacy to this industry. Whether or not that is a good thing, remains to be seen, as no one knows which exact rules can be expected.
As there is no law in place to deal with issues relating to cryptocurrencies, something has to change. This means the RBI, Enforcement Directorate, and Income Tax authorities will take action according to the current laws until a new proposal is drafted. This also applies to police actions and court case snow and in the near future. An interesting turn of events, although it remains to be seen what the future will hold for Bitcoin and altcoins in this regard.
Most people will be familiar with how the Reserve Bank of India restricts buying and selling of cryptocurrencies through its services and products. That situation may not necessarily come to change in the near future, although the RBI has yet to issue an official statement. It is possible the bank will maintain its “blanket ban” on cryptocurrencies, even though that would contract domestic laws and guidelines altogether. Banks can do their own thing in this regard, which can create a fair amount of friction along the way.
For the time being, there is no indication the country’s central bank will reserve its stance. Considering how the ban has been in place since July of 2018, it seems unlikely that any real change should be expected in the near future. One particular aspect regarding the bill – the jailing of Bitcoin sellers for up to 10 years – might need to be amended, as that will continue to create a lot of doubt regarding cryptocurrencies. For now, however, it seems the industry can grow in India, albeit it remains to be seen if that will yield any noteworthy changes.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.