The Central Government has had a difficult time picking the right approach to crypto assets and blockchain technology in general. In a fresh attempt to dig into the segment, public officials are reported to plan an expert panel to design a regulatory framework. RBI’s own digital rupee and much of the nation’s tech industry are at stake.
The Centre to Form a Committee, Involve Industry
While global interest in digital currencies has been spiking, Indian crypto investors have been operating in a legislative limbo for the past few years. The question of whether working, trading or investing in crypto is legal is hard to answer.
Recent reports suggest, however, that Government officials are preparing a panel of prominent public and private experts on the matter, in view of potentially regulating crypto markets across Bharat. The intent is to arrive at more profound and hopefully different conclusions than a similar committee did back in 2019, recommending a blanket ban on novel digital assets.
The news points to an important turnaround for the authorities, one that is certain to give a lift to a number of online business sectors in India. According to ENV Media’s CEO, Mattias Bergehed, online gaming and entertainment segments are highly dependent on payment conditions and provisions. Issues like data safety, transaction security and potential conversion transparency are key when selecting an online betting operator like 10Cric or a mobile entertainment community.
Through crypto transactions, desi users would not worry about transaction costs when paying the mega millions ticket price or when transferring funds to a friend. Another safe and stable payment method is an added value for the entire Indian online business ecosystem.
The State of the Cryptocurrency Market in India
Industry sources have been reporting important growth in popularity and transaction volumes across India’s crypto market niches. Exchange platforms like Unicoin, WasirX, CoinDCX and CoinSwitch are gaining national traction, while retail investors have contributed to a widespread use and adoption as payment means.
In an effort to set some transparency standards, crypto exchanges are following a rigorous Know-your-customer (KYC) procedure, in addition to formal self-regulation and a series of checks on potentially suspicious transactions. Much like the online gaming world, crypto operators are eager to shake off government doubts about money laundering schemes or other potentially activities channeled through cryptocurrencies.
A pivotal (if indirect) support came from the Supreme Court in March of 2020 when it struck down temporary bans on crypto transactions passed earlier by the Reserve Bank of India (RBI). That judgement adds one more reason to why the Government’s current attempt should require a more justified and better “calibrated” regulatory framework.
RBI Pushes for National Crypto Coin
Finance Ministry experts are reluctant to go down in history as the officials who refused to recognise the importance of blockchain technology for the future of the nation’s digital economy. This is exactly why there are attempts to separate crypto assets from mere digital currencies and tap into the technology’s undeniable potential.
Moreover, as means of countering China’s digital Yuan and the dominance of foreign fiat money on global financial markets, the RBI has tentatively announced it is working on a digital Rupee project. Envisioned to work exactly like cash while using indigenous blockchain technology, the national crypto currency should reduce digital transaction procedures and allow for a better RBI regulation.
Eager to participate in the current wave of technological transition – while maintaining relative control on the Union’s financial markets – the RBI will also provide its viewpoint on cryptocurrency regulation. Crypto investors, digital startups and tech-savvy desi users are waiting for some positive news.