India could soon Legalize holding Cryptocurrency

The new year might come with some good news for the HODLers in India, as it could soon be legal to hold cryptocurrencies in the country.

As per an English News Daily, The New Indian Express, a government committee is working on the same and has already met twice to discuss on the matter. A report might soon be submitted to the country’s Ministry of Finance, may be in next month.

In addition to holding meetings, the government committee has also consulted the crypto exchanges and experts and currently is planning on considering and working on the legal matters along with the law ministry.

As per the source who spoke to the Indian Express, the legalization within the country shall happen under strict terms and conditions. He stated “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.”

In the previous year, the inter-ministerial committee came into existence with a motive to focus on cryptocurrency rules and regulation. This committee is the second of its kind. The first government panel which was formed in March 2017 to tackle the issues related to cryptocurrencies had suggested for a total Ban on the crypto dealings in India.

Post the suggestion for a total ban by the first committee, the banking authority of India, the Reserve Bank of India went ahead and declared the cryptocurrencies as illegal. As a result, all financial institutions controlled by India’s central bank were prohibited from offering their products and services to businesses involved in cryptocurrencies. This total Ban was challenged in the Supreme Court and as a result of which the current inter-ministerial committee has been formed.

India’s central bank, the Reserve Bank of India, the Ministry of Finance, the Ministry of Home Affairs, the Ministry of Electronics and Information Technology, the National Institution for Transforming India (NITI Aayog), the State Bank of India and the Central Board of Direct Taxes were the members of the First formed panel. The second panel also includes the same institutions as its members in addition to the Securities and Exchange Board of India.

Many firms dealing in cryptos have to shut shop following the complete ban by the Government. Zebpay, an exchange, closed its business in Sep last year. It stated “The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business.”