Ban U-Turn? Indian Govt. Panel Suggests Cryptocurrency Regulation: Report

An Indian government panel reportedly tasked to look into cryptocurrency policy isn’t in favor of a sweeping ban akin to the recent banking blockade enforced by the country’s central bank.

Citing sources, India’s biggest business news TV channel and financial daily Economic Times is reporting that an Indian government panel tasked to ‘look into cryptocurrency’ isn’t in favor of a blanket ban in the country.

Instead, the panel will recommend allowing cryptocurrency trading with ‘riders’ or guidelines in the form of regulation.

SOURCES | Govt panel not in favour of banning cryptocurrency. Govt panel may suggest allowing cryptocurrency with riders: Cogencis pic.twitter.com/osP6ziwGbO

— ET NOW (@ETNOWlive) June 13, 2018

While the report is yet to be substantiated, the Indian government has previously established an interdisciplinary committee in 2017 to examine and recommend a framework for the domestic cryptocurrency sector. Led by the Ministry of Finance, the committee comprises of a number of government ministries and other authorities including the central bank.

If the report is true, any legislative move to regulate the nascent but growing cryptocurrency sector will bring relief to adopters and businesses who have felt the brunt of a banking blockade enforced by the Reserve Bank of India (RBI), India’s central bank, in April. The controversial, sweeping policy move has seen the RBI forbid all regulated financial institutions including banks from providing services to cryptocurrency businesses.

Domestic industry news resource Crypto Kanoon added:

In view of the news (though unverified) from various sources, we strongly feel that there is every likelihood that Government will regulate Crypto soon. In fact it's never showed hostility towards Crypto. It just slowed down the market in order to minimise the risk of consumers.

— Crypto Kanoon (@cryptokanoon) June 13, 2018

Just this week, the RBI admitted to not conducting any research nor consulting any government panel prior to enforcing the ban in what is increasingly appearing to be an arbitrary decision taken to dent the heightened growth of the cryptocurrency industry.

As the country’s financial regulator and authority, the RBI has notably shirked away from its responsibility of developing or researching regulatory guidelines for the domestic crypto sector.