BlockchainBusiness & Finance

Despite Ban by Supreme Court, India is to Prepare Framework for Cryptocurrencies

One of the fastest growing economies in the world, India, is making its move towards blockchain. Despite controversies and news showing cryptocurrency unsettling in India, Bitcoin News states that India is preparing framework to lay cryptocurrency guidelines by September 2018.

The news is more of a shock than surprise because the past showed India’s response strictly against cryptocurrency. Several conflicts rose and caused disagreements and troubles to concerned bodies. Due to disputes getting worse, matters were finally taken to the Supreme Court to prevent situation from deteriorating.

Recent developments reported by Quartz explains that Supreme court of India will be giving final hearing of the case on September 11. According to the report, the case is filed against Reserve Bank of India (RBI). RBI strictly ordered all exchanges, traders and banks to not indulge in any kind of crypocurrency dealings. Even banks were prohibited from allowing their customers to buy any shares on their own in cryptocurrency from their bank accounts. This led to a great upset in crypto market and affected trades that seemed to be promising before the impositions laid by RBI. Sudden downfall of exchanges who were just setting out for more promising businesses was of so concern to them that they decided to take action by litigating RBI.

Mix views have come out on Supreme Court’s take on this particular case as the court announced of delaying decision till September. Shivam Tharkal, the CEO of Indian crypto exchange BuyUcoin, was not pleased with the delay. He stated:

We need to wait for about 50 more days now and every day matters as the Indian cryptocurrency ecosystem is getting affected, so we were hoping for a faster decision.

Similarly, Ushan Dwivedi, an associate at legal firm TRA Law, holds his own views on the decision. He thinks that any matter affecting economy of India holds immense importance and to pass judgement in the interests of concerned, requires time and that’s why decision pending till September is totally justified. He said:

There are several government agencies interested in the matter and it is important to take into account their views on the subject. And therefore, such a delay is not unexpected.

Despite all these events, more or less thwart the way of blockchain from establishing in India, the shocking news turned the tables around by setting the future of blockchain in a completely new direction. Indian government’s likeliness of issuing guidelines for cryptocurrencies by September tells that it’s not over yet for India.

The New Indian Express also confirms the news by releasing a statement from finance ministry that says:

The government will finally come up with detailed guidelines on cryptocurrency. The draft is ready and consultation is on with all the stakeholders, including market regulator SEBI, India’s central bank RBI and the Internet and Mobile Association of India (IAMAI) before coming up with the final paper. We expect it to be ready by September.

Sudden change of plans through the moves recently taken by Indian government are deeply rooted with the fact that cryptocurrency’s potential is unquestionable. Senior Indian official agrees with this fact and suggests that there must be a regulatory system or mechanism so that India doesn’t struggle with cryptocurrency unlike other countries of the world. According to the official’s statement, a common ground if set successfully, will be sufficient to tackle the problem of managing cryptocurrency effectively;

Cryptocurrency is a new phenomenon and naturally, governments across the globe are struggling with it……Most of the officials have serious reservations against it, which all of us agree with … we want to arrive at a common conclusion. There must be an appropriate mechanism to regulate the same.

India’s mindset on cryptocurrency isn’t crystal clear yet. Before Supreme Court’s ban, there were several incidents which didn’t portray cryptocurrecny positively, accusations from political parties pointing each other for using cryptocurrency for corruption and personal benefits. Besides this, Subhash Chandra Garg, Department of Economics Secretary, said in an interview that Indian government will make sure that crypto does not enter in their country’s payment system. With these news flowing, it could be said for sure that cryptocurrency would not set its journey in India. Even now after the legislation workings are carried out, which is the first favorable step taken by the government, nothing is guaranteed. But things are very different now in India than they were before this initiative by Indian government.

Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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