India might lift the cryptocurrency ban that is currently active in the country. According to a report, the second interdisciplinary committee on cryptocurrencies in India, formed by the central government, is likely to recommend lifting the ban and legalize it.
It is no secret that the Reserve Bank of India, the central bank in the country, is not a fan of cryptocurrency. In 2017, the government agency already warned citizens about the digital coins several times.
In April of this year, the Reserve Bank of India turned up the pressure. No more warnings. The RBI announced a ban on the sale or purchase of crypto-currency. But, it seems that India’s long-running saga regarding the legality of cryptocurrency is likely to see a lifting of the ban in 2019.
According to a new report, the second interdisciplinary committee on cryptocurrencies will give recommendations in February 2019 to the Finance ministry. Apparently, the committee already had two meetings and the outcome is in favor or cryptocurrencies and the legalization of the digital assets.
A senior official said:
“We have already had two meetings. There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on. We will have more clarity soon.”
Currently, cryptocurrencies are still banned by the Reserve Bank of India (RBI), but there is the opinion amongst the committee that cryptocurrency cannot be dismissed as completely illegal. A senior official who attended the panel meetings said that there is, indeed, the need for regulations, but a full ban is out of proportion.
It is likely, that India will see a form of crypto legalization in 2019, but formed by heavy regulations. The legalizations for cryptocurrencies are needed if big companies are willing to step into the Indian market with new payment options. Something, the whole country can benefit from.
Social media giant Facebook is reportedly looking to develop its own stablecoin for money transfers via its popular messaging app Whatsapp. According to sources, the service will launch first in India.