Bitcoin and cryptocurrency trading may avoid a complete ban in India as the government is planning to form a new panel for cryptocurrency regulations in the country.
According to a recent report published by The Economic Times, the Indian government is reconsidering its stance on Bitcoin and cryptocurrency trading. Authorities believe that the crypto recommendations by Subhash Garg (India’s former finance secretary) are outdated.
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The new committee will explore possibilities about the usage of blockchain technology in different sectors along with a potential regulatory framework for Bitcoin and other digital assets.
“There is a view within the government that the recommendations made by the Subhash Garg are dated and a fresh look is needed at the use of cryptos rather than a total ban,” an official familiar with the matter told The Economic Times.
According to the report, the Indian government is planning to treat Bitcoin and other cryptocurrencies as digital assets. Despite the reason that there is no formal announcement about the new committee, authorities have already started talking to different stakeholders including cryptocurrency trading platforms in the country to evaluate the market.
The recent report about Bitcoin and crypto regulations in India came after months of speculations and uncertainty among the Indian crypto community. During the latest conversation at the India Today Conclave South, Nirmala Sitharaman, Finance Minister of India, said that the country is not planning to shut all crypto-related operations. “We will allow a certain amount of window for people to experiment on blockchain and bitcoin. The Supreme Court had commented on cryptocurrency and while the RBI may take a call on official cryptocurrency, from our side, we are very clear that we are not shutting off all options,” Sitharaman said during the discussion in March 2021.
The overall market cap of digital currencies dropped significantly during the last 24 hours after Bitcoin dropped below $39,000 for the first time since February 2021.