The confusion brought about by the Reserve Bank India for issuing a ban on the use of crypto is likely to come to an end come 2019. This after a consensus was reached by a second interdisciplinary committee to lift the ban but in return place by strong regulations to control the industry. The second interdisciplinary committee was put in place by the government to propose the way forward for the virtual currency industry in India.
According to reports from the panels meeting the members are of the opinion that crypto can’t be banned entirely in India. They believe a robust legal framework for the industry will help the government control the industry in a better way rather than placing a ban. Although the committee’s reports will be ready in February 2019, the Indian Finance ministry will be in possession of the committee’s recommendations. The committee has had two previous meetings all in favor of lifting the ban.
Indian has had a vibrant market for cryptocurrencies, and its acceptance first led to RBI issuing a warning way back in 2013 December. But come April 2018 it banned crypto completely. Before the issuance of the ban, the central bank had hinted on minting an alternative digital coin for Rupee Lakshmi coin. Unlike Bitcoin, Lakshmi coin would be an alternative for fiat currency in digital form for Indians. Lakshmi coin was to cater for Indians digital transactions. To the players who were currently in the Indian market, the ban led to them having difficulties in carrying out transactions. The challenges led to them closing up shut while at the same time setting up shop in crypto friendly countries. For instance, Zepay shut down operations in India but increased its global footprint.
Crypto Community Fought Back
In a bid to get a clear stand from the government, various crypto players took the government to the Supreme Court and got a ruling in their favor. The government was given two weeks to issue its stand concerning crypto. But time elapsed without any information from the government.
Although the ban led to some players exiting the Indian market if the ban gets lifted several startups have expressed interest in setting up shop in India. Some of the firms are MoonX which plans to set up a non-profit trading platform, Facebook which is eyeing the Indian market for its Stablecoin and Indonesian startup Pundi X which is eyeing the Indian market for its point of sale network.