After a long set of delays due to several reasons, Indian finance minister Nirmala Sitharaman has finally indicated that India has prepared its new cryptocurrency laws at last that will be soon in execution. Along with several hints she dropped about the structure of law, most noticeable was it giving investors an exit window.
It is most likely that cryptocurrency won’t be outright banned in India but it won’t be recognized as legal money either. According to some reports, the cryptocurrencies will be recognized as a tradeable asset with a market.
Apart from that, any cryptocurrency except the one that has been issued by the state will be prohibited and people who have their money invested in them will be given a window to sell out.
The cryptocurrencies will be recognized as a tradeable asset with a market. Ms. Sitharaman said that the law has been presented to the cabinet and it is awaiting its approval. Once getting approved by the cabinet anytime between now and the next winter session of parliament, it will be introduced in Lok Sabha.
For a long India has had an uncertain yet anti stance on cryptocurrencies. In an article that we had published earlier, we had reported about the Indian finance minister’s statement where she was all positive and had talked about India keeping all its option open and being willing to experiment with blockchain technology as well as crypto.
There was also a possibility that cryptocurrencies and India’s existing monetary system could co-exist after her statement but the latest report draw a different picture now.
Earlier, the Reserve Bank of India, which we all know plays a pivotal part in the government’s financial decision had also said neither does it disagree with the finance ministry’s stance on crypto nor the government doesn’t acknowledge its concerns regarding crypto.
In another interview with the Minister of State for Finance and Corporate Affairs, Mr. Anurag Thakur, there was a hint that the government was looking for options other than the ban. Regulation and not ban could be the future of cryptocurrency in India was what he had said in the interview.