Crypto stakeholders cheered the move on Twitter considering it as a positive signal
In a bid to regulate the cryptocurrency frenzy, the Indian government may set up a panel of experts that would explore the use of blockchains and suggest ways to regulate cryptocurrency as a digital asset instead of currency, said a report by The Economic Times.
The committee’s scope may include ways to operationalize the Reserve Bank of India’s proposed digital rupee, the report added. It further noted that Minister of State for Finance and Corporate Affairs, Anurag Thakur, earlier had a meeting with stakeholders from the crypto and banking industry. Finance Minister Nirmala Sitharaman is also expected to meet her team later this month and will be briefed about the ongoing developments in the crypto industry.
Moneycontrol could not independently verify the report.
Crypto stakeholders cheered the move on Twitter considering it as a positive signal towards the government’s acceptance to regulate and not ban cryptocurrency.
“Finally, India plans to regulate & not ban Crypto. 2019 bill is outdated. It’s amazing to see progressive thought from our Government. Nirmala Sitharaman and Anurag Thakur Heartfelt THANK YOU! Let everyone know. India will regulate, not ban, Crypto Rocket,” Nischal Shetty, Founder and CEO of Binance owned WazirX India tweeted.
Lots to unpack here.
1. Crypto classified as “Digital Assets”
2. Committee core is to “Regulate” Crypto
3. Government understands crypto is cutting edge, 2019 Bill outdated
4. Government wants to engage with industry
5. FinMin monitoring Crypto volumes in country
/— Nischal (WazirX) ?? (@NischalShetty) May 19, 2021
Crypto stakeholders have interpreted the move as ditching of the proposal by a committee led by former finance secretary Subhash Chandra Garg that proposed to ban carrying out activities related to cryptocurrency through a proposed draft bill “Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019.”
However, another bill, ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ was reportedly scheduled to be tabled in the Budget session of Parliament in March but was deferred for unknown reasons.
CoinDCX co-founder and CEO also applauded the move to set up a government panel saying this is one of the positive news for the entire Indian crypto industry.
This is one of the positive news for the entire Indian crypto industry.