NASSCOM March 4, 2020Ī couple of months into this, India was already riding the crypto wave. We believe that banning #tech is not the solution, a risk based framework must be developed to regulate and monitor cryptocurrencies and tokens. We welcome the Supreme Court's decision to lift #RBI's ban on trading in #Cryptocurrency.
This resulted in the Supreme Court of India retracting the RBI’s circular issued in 2018, leading to banks like HDFC Bank, Yes Bank, ICICI Bank, and the State Bank of India resuming their transactions with cryptocurrency exchanges. were experiencing moved Indian authorities to rethink their decision. Many people missed reading these details, resulting in a very chaotic state where people started to doubt cryptocurrencies.įast forward to 2020, the advancements that the crypto regulated countries like the U.S, Singapore, etc. Meaning one can’t use crypto to buy and sell things however, they never said it couldn’t be held as an asset. They said that they are taking measures to eradicate the use of crypto in financing illegal activities: a great step towards a healthy crypto ecosystem.Īdditionally, they said they don’t consider it as a part of the payment system. In the statement released by the Finance Ministry, it nowhere said that buying, selling or holding cryptocurrencies were prohibited. The government was never against the technology they intended to prevent the wrong usage of cryptocurrencies and blockchain. It suggested all entities governed by them stop offering any kind of service to entities associated with virtual currencies. The above statement from the Finance Minister was followed by aĬircular from RBI. “ The Government does not consider Cryptocurrencies “as Legal Tender or Coin” and will take all measures to eliminate the use of these Crypto Assets in Financing “Illegitimate Activities” or a Part of the Payment System The Government will explore the use of Blockchain technology proactively for assuring in Digital Economy.” In 2018, The Finance Ministry released a statement To curb the rise in illicit activities, the government took measures that they thought were best at the time.
Since at the time, cryptocurrencies were in a very nascent stage, and the regulators were yet to decipher their adoption. But there were also folks who were taking undue advantage of it and were fuelling illicit activities. When cryptocurrencies started to blow up in India in 2017, tech-savvy retail investors were relishing them.
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