Pending Bill Still Inhibit Cryptocurrencies From Flourishing In India
Pending Bill Still Inhibit Cryptocurrencies From Flourishing In India
March 8, 2020
Pending Bill Still Inhibit Cryptocurrencies From Flourishing In India
Pending Bill Still Inhibit Cryptocurrencies From Flourishing In India
March 8, 2020

A pending bill may still inhibit cryptocurrencies from flourishing in India, with India’s parliament yet to rule on the “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill” from 2019.

On March 7, it has been reported by Business Insider that if passed, the bill will introduce unique regulatory frameworks for virtual currencies, utility tokens, and commodity-backed tokens, likely creating a complex exclusionary legislative apparatus for blockchain businesses to navigate.

However, on March 4, India’s crypto community rejoiced as India’s Supreme Court ruled that the Reserve Bank of India’s (RBI) ban was “disproportionate and unconstitutional.” 

The circular had prevented financial institutions from providing banking services to companies operating with cryptocurrency. The ban had been in place since April 2018, and targeted companies offering “any service in relation to virtual currencies.”

ALSO READ :  Gitcoin Pledges Development Grant Towards Coronavirus Initiatives

Less than 24 hours after the restrictions were repealed, several Indian cryptocurrency exchanges had already resumed fiat deposit services, including Unocoin, WazirX, and CoinDCX.

In response to the repeal, HashCash consultants also announced that it would invest $10 million into India’s crypto industry this year.

Likewise, in addition to the hostile bill from 2019, India’s crypto community will have to also overcome an appeal from RBI in the Supreme Court regarding the repeal of its circular.

Citing anonymous sources, The Economic Times reported on March 6 that RBI is concerned that widespread virtual currencies could put India’s banking system at risk.

Sohail Merchant, a member of the Internet and Mobile Association of India’s Blockchain and Cryptocurrency Committee, stated that despite hostility from lawmakers toward crypto, the main objective of the Indian blockchain industry stakeholders is “to create a dialogue with policymakers and develop a comprehensive framework for crypto assets in India paving the way for innovation.”

Despite the RBI ban on cryptocurrencies, a recent study by Statista reveals that India’s population has the highest per-capita usage of darknet platforms worldwide.

ALSO READ :  Reserve Bank of India Says It Has Not Banned Crypto

Thus, the report shows that 26% of 23,227 respondents between the ages of 16 and 65 have used technologies that facilitate access to the dark web, more than twice the global average of 12%.

Source: prweb.com | cointelegraph.com | economictimes.indiatimes.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!