After months in which regulations have been discussed in India, the country’s central bank will be allowing cryptocurrencies in its territory but with new regulations to be applied in the future.
RBI Allows Cryptocurrencies
The Reserve Bank of India sees to have taken another position towards cryptocurrencies and digital assets. On Wednesday June the 13th, Economic Times posted an article saying that the RBI was going to lift sanctions and the ban on cryptos and allow trading again.
Some reports said that the bank decided to implement the ban and restrict virtual currencies without really investigating on how to properly regulate them. But the crypto community in the country decided to work so as to avoid these regulations.
Crypto enthusiasts signed online petitions against the decision taken by the RBI, and it had very favourable effects. The supreme court of India filed several cases against the central bank of the country.
Coinrecoil’s co-founder, Kunal Barchha, said:
“The foremost reason we are fighting is because we know that banning is next to impossible and it will make things worse for everyone – for the Reserve Bank, for the government, for the tax department, and for the user. In addition, it will push India back in reference to blockchain adoption across the world. We always have an option to relocate to other country to carry our business, but that’s not the solution. If we cannot convince our own government, we cannot expect other governments to support us.”
This situation with the crypto market in India could help the country move towards a new legal framework where virtual currencies are allowed and the industry flourishes. India is one of the most important countries in the world in economic terms, and in the future it will have even more presence in the international markets.
With this news, India will also enjoy the benefits of letting its citizens trade and profit from cryptocurrencies, something similar to what Japan did in the last year. Moreover, it can be taken by other countries as a signal that virtual currencies shouldn’t be banned.