This season was particularly bad for Indian crypto investors and traders with continuous government crackdowns and a shroud of doubt regarding the future of this industry in the county. That could be about to change as a recent report suggests that regulation and legitimization may be on the manner in India.
The crackdown culminated with a ban on holding crypto resources as the Reserve Bank of India (RBI) spent the better portion of 2018 trying to invade them. Banks were banned from handling crypto exchanges that made it rather tricky to trade them with fiat without turning to OTC platforms. Court cases involving the RBI and nearby exchanges were delayed and postponed leaving the whole sector in a quandary as to the legality of electronic currencies.
As shown by a recent report nevertheless things, perhaps about to change with a questionnaire assembly leading to a more lenient result for crypto. A senior official who attended the meeting said;
"We have had two encounters. There is an overall consensus that cryptocurrency cannot be dismissed as completely prohibited. It has to be legalized with powerful riders. Deliberations are on. We will have more clarity soon,"
The first Enforcement committee comprised of varied state and banking departments was setup by the Indian authorities in March 2017. By July they had recommended an entire ban on digital monies, but a variety of exchanges continued to function and the people still had a desire for crypto.
A second inter-ministerial committee, headed to the Department of Economic Affairs secretary Subhash Chandra Garg, was setup to take a second look into crypto advantage viability. A few of the ministers on this panel attended the recent G20 summit in Buenos Aires in which crypto regulations, not outright bans, were advocated.
According to the record, these ministers are very likely to share insights garnered in the international summit and also make recommendations based on these to the Indian scenario.
"We have also taken inputs from cryptocurrency exchanges and experts and will be examining legal issues with the law ministry. It's a complicated issue. Once all aspects are determined, then we will have more clarity," the official added.
If India does loosen its grasp and allows controlled crypto trading to prosper, it may start up one of the biggest markets around Earth.