India is a bit peculiar when it comes to cryptocurrencies and blockchains. Many contradictory reports about the future regulation of this industry may still change in the near future. Now it seems that the government is working to lift the ban on cryptocurrencies.
India lifts ban on cryptocurrencies
India is a country with a strong focus on technology and financial innovation, Bitcoin and other cryptocurrencies seem to complement it perfectly. Although India has a growing number of Bitcoin users, the government appears to have other plans for regulation. Right now, the Reserve Bank of India has made it clear that it wants to discourage all service providers from engaging in Bitcoin businesses.
With the deadline to stop services to cryptocurrency companies, Indian banks will have to make some difficult decisions in the coming weeks. No bank really wants to distance itself from Bitcoin at this stage, especially because the industry has attracted so much attention in recent months. Surprisingly, the Indian government also seems to be thinking in that direction.
It has even been formed by the Indian government, which has been dealing with cryptocurrencies and has produced some interesting ideas. Unlike initially expected, there is no intention to ban cryptocurrencies. The panel has criticized RBI for removing cryptographic services providers from the monetary system.
It is obvious that the lack of active regulation for crypto-poachers violates the situation around Bitcoin in India at the moment. After the government has finally come to an end, early decisions by the central bank could be lifted in the coming months. A special hearing will take place at the end of July to determine how to proceed from there.
Whether the decision will be positive, remains to be seen. It is possible that things could improve in India, but it seems that little will change in the coming weeks. However, this does not mean that the cryptocurrency industry in India will not thrive as both consumers and businesses find ways to circumvent restrictions imposed by banks and other regulators.
In addition, the OTC market (Over-The-Counter Market) is growing in India. Any attempt to make life difficult for the Exchanges in India will push more people into the OTC market, which can not be regulated. An interesting development to keep an eye on.