The cryptocurrency ban in India could come to an end soon. A report released by “The New Indian Express” showed that the government committee met twice this month to discuss cryptocurrency. They will soon by submitting a report to the Ministry of Finance in India.
The report says that cryptocurrency in India should be legalized. However, strong regulations should be placed on it. Market experts are currently planning to discuss legalizing cryptocurrency with the Ministry of Law.
The inter-ministerial committee was formed back in 2018. The first panel stated that crytocurrencies should be banned. The Reserve Bank of India decided to make cryptocurrencies illegal after the first panel made the recommendation. Financial institutions in India stopped offering any cryptocurrency services to customers.
The Supreme Court challenged the ban. The government decided to put together a new panel. The first panel consisted of members from the Ministry of Electronics and Information Technology, the Ministry of Home Affairs, Ministry of Finance and the Reserve Bank of India. The new panel has people from the same organizations. However, it also has people from the Securities and Exchange Boards of India.
Many cryptocurrency companies have shut down as the result of the ban in India. Zebpay was one of the most popular cryptocurrency companies. It closed down its operations in India in September 2018. Zebpay stated the Reserve Bank was the main reason that they shut down. They stated that the ban made it difficult for them to do business. They also said that there was no meaningful way to conduct cryptocurrency exchange.
The Indian government has pushed to legalize cryptocurrency since 2018. They are hoping that the new panel will make cryptocurrency legal again. India is home to 1.33 billion people. Therefore, if the country does allow cryptocurrency, then the market could potentially flourish.
