Rumors of India Possibly Banning Cryptocurrencies Fading. A panel organized by the Indian finance ministry has gotten together to take a look at the possibility of regulating cryptocurrencies. There had been rumors that the nation might consider outlawing cryptocurrencies altogether, but the chances of that event happening are appearing to be minimal at the moment.
A group that includes members of the Reserve Bank of India and the Securities and Exchange Board of India had been discussing cryptocurrencies in a special panel that was set up in December. The first regulations from that panel are expected to be released at some point this month.
It is expected according to outside sources, particularly government officials, that the country is not going to outlaw cryptocurrencies. There has been more of an interest in regulating the trade of currencies and knowing where the money associated with such currencies is coming from.Advertisement
The finance ministry panel had been rumored to consider outlawing cryptocurrencies from trade in India. However, reports are that the panel will not consider the trade of currencies to be illegal. Rather, the group wants to encourage people to look into the diverse options they have for their investment demands.
But even with this development in mind, there have been talks about the currency being invested illegally in many places. The government is thinking heavily about managing legal currency and in helping people to avoid possible scams.
Details on any regulations that would be used in India to control such currencies have not been discussed. However, the development of there being no ban may come as a relief to the industry as one of the world’s most populated countries and fastest-growing markets would continue to participate in the field.
The founders of the Pune-based currency exchange Coindelta have stated that while they are glad that such currencies will continue to be traded, these currencies will still be treated as commodities. This is due to the intense volatility of the currencies. Those investments would still be available to people throughout India who are interested in finding ways to expand upon their investment options.
Many cryptocurrency groups around India have also been willing to be open for additional investigation and inspections on occasion. These groups are hoping to prove that their currency-related efforts are legitimate and that they are not at risk of possibly breaking any laws relating to the use of such currencies.
The development comes as the country is working on reducing the flow of illegal money in India. There have been worries that many are using illegal money and counterfeit currency in India to fund terror-related activities and other illegal functions. The most significant move from the Indian government came in late 2016 when all Rs. 500 and 1000 banknotes in the Mahatma Gandhi Series of currencies were discontinued.
The market was not impacted much by the development in India. The industry appears to have stabilized for the most part following some declines, although any news of India outlawing currencies more than likely would have caused the markets to bottom out in general.