As the market is beginning to show mild signals of recovery – with Bitcoin not falling further after dropping down to the $31000 mark yesterday, – the industry is once again hopeful. In the meanwhile, the Indian and global crypto community could be relieved with the Indian authorities demonstrating to have a slightly lenient approach towards cryptocurrencies.
India has been fairly anti-crypto. Earlier this year lawmakers also brought in a resolution to ban cryptocurrencies. While that never got an official green signal, the market and the community critiqued and resisted the government’s anti-crypto stance.
Back in 2018, the country’s top financial authority, the Reserve Bank Of India (RBI) had issued guidelines restricting financial institutions and payment services providers (PSPs) from facilitating crypto transactions. However, the decision was challenged and in 2020 the Supreme court gave a more crypto-friendly decision and trading and owning crypto was decriminalized and so were the institutions.
Also, despite the RIBI guidelines, the country’s financial authority that monitors and executes UPI payments said last month that they would not be banning crypto transactions. It was a significant victory for the crypto community and traders in the country.
Now the Indian government has confirmed plans to set up a new panel that will be tasked to study the evolving cryptocurrency market. The government will, until then not be taking any harsh anti-crypto stand. A policy in regards to cryptocurrencies will be drafted based on the new panel’s report.