Many countries are still trying to legalize and allow blockchain technology and cryptocurrencies including India where there are many who support it as well as many who want it banned. After the RBI’s decision on forbidding all local banks from engaging in any cryptocurrency based transactions there are many problems that crypto enthusiasts face. However things seem to be changing and a decision concerning the regulations of cryptocurrencies could be made sometime soon.
Since the past few months the Indian Supreme Court who has been listening to petitions against the ban of cryptocurrency by the RBI had directed the government to file a counter affidavit. Back in November Nischal Shetty, the CEO of Indian crypto exchange Wazirx said, “Supreme court has asked govt. to file an affidavit related to the findings of the crypto committee set up by them. They’re supposed to submit this within 2 weeks.”
The committee that the court has asked for is headed by Subhash Chandra Garg, the Economics Affairs Secretary of India. The other members include RBI deputy governor BP Kanungo and Ajay Tyagi who is the chairman of India’s regulator. This committee’s main mission was to inspect and survey the global regulations as well as the legality of cryptocurrencies.
It now seems that the Supreme Court has given the Union government a chance to come up with the necessary policy decisions as well as what the functions of cryptocurrencies should be. The time given to the committee settle this is 4 weeks. Crypto Kanoon which is a well-known platform for crypto news and analysis tweeted, “#CryptovsRBI update!
Supreme Court has granted 4 weeks to Indian Government as the final opportunity to bring about a policy (Rules and Regulations) on Crypto currencies!”
Due to India’s huge population and economy crypto expansion would be ideal; however the battle and decisions have been going back and forth since 2018.
The court has now decided that the Central government will be given a chance to make the above mentioned changes before the court itself makes any conclusion. If the government fails, the court will take a decision on its own. The chance of this happening is slim since the Union government is already making the necessary alterations and working on the policy decisions which have to be made.
However India’s cryptocurrency enthusiasts are not ready to leave this to the hands of the government. A group of enthusiasts by the name of Blockchain India has arranged a number of meetups where they will create a list of suggestions for the policy that will be community sourced. The group will then hand it over to Subhash Chandra. India’s National Association Software and Services Companies [NASSCOM] submitted a report which talks about India’s role and situation in the blockchain and cryptocurrency world. The report was titled “Blockchain: Hype to Hope” gives a detailed account on the current condition of the blockchain market. This report stated that, “India needs to act fast & work with key stakeholders to provide regulatory certainty around Blockchain & Cryptocurrencies.”