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.
India's Crypto Industry Still Threatened by Ban as Pending Bill Looms: Despite the Supreme Court repealing the RBI crypto ban, India’s crypto industry still faces significant challenges https://t.co/W7fLEvwVmw pic.twitter.com/ZgTLSidxiD — Future Bitcoin (@Future_Bitcoin) March 7, 2020
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.
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.”
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.
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%.