Despite the recent Supreme Court order, the Indian crypto ban is still pending implementation, creating a situation of fear and confusion. While the bill on cryptocurrencies, “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill,” is still pending in the Parliament of India.
The situation, therefore, creates confusion and impedes the cryptocurrency from flourishing in the most populous democracy in the world. In case the bill is passed, then a new era of a unique regulatory framework ought to begin. A multifaceted exclusionary legislative system for cryptocurrencies, commodity-backed tokens, and utility tokens would exist for navigation of blockchain businesses.
Supreme Court revokes Indian crypto ban
On 4th March, the crypto community of India rejoiced when the country’s Supreme Court repealed the Indian crypto ban imposed by the Reserve Bank of India and declares that the ban to be “disproportionate and unconstitutional.”
According to the circular, financial institutions were prohibited from providing any sort of banking services to firms that operated with cryptocurrency. Since April 2018, the ban was in effect.
However, as soon as the restrictions were repealed, numerous cryptocurrency exchanges in India, including e, Unocoin, and CoinDCX, resumed fiat deposit services. Moreover, after the repeal of restrictions, HashCash consultants made an announcement of investing $10 million in the cryptocurrency market of India.
India’s crypto industry’s future still not clear
Besides the 2019’s hostile bill, the crypto community of India has to deal with the appeal of RBI in the Supreme Court regarding this latest repeal of its circular. The RBI is of the concern that cryptocurrencies could jeopardize the banking system of India, hence calling for India crypto ban.
A member of the Internet and Mobile Association of India’s Blockchain and Cryptocurrency Committee, Sohail Merchant, in this regard stated that although lawmakers are hostile towards cryptocurrency, the main goal of India’s blockchain industry stakeholders is to bring the policymakers on the table for dialogue. This would pave the way to develop a comprehensive framework for the crypto sector in order to pave the way for innovation.