The supreme court of India has given its central government a 4-week deadline to produce the final draft of cryptocurrency regulations, before making its ruling on various pending crypto cases. The decision came in the light of hearing a petition filed against the ban on crypto use by central banks. In a circular dated April 6 last year, the central bank banned financial institutions under its control from providing services to crypto businesses.
Reserve Bank of India has banned the use of crypto in their central banking system and this has been challenged in the supreme court by the Internet and Mobile Association of India (IAMAI), the IAMAI has asked the court to lift the ban as it is hampering many crypto related services in the country. The petitioner called the ban unconstitutional and cited the example of Zebpay which has to shut their operations due to banking troubles.
India’s Continuous Tryst with Regulating Crypto
The central government of India has been working towards finalizing the regulatory framework for cryptocurrencies. The ministry of finance set up a panel headed by Subhash Chandra Garg Secretary of Economic Affairs, to draft the regulation. Despite taking the necessary steps toward regulating the crypto framework, the final draft is getting delayed.
Recently we heard that the RBI has finalized the draft and it will table it in the parliament for discussion and passing of the framework. Last year the finance minister during his speech in Lok Sabha, the lower house of Indian parliament had said that they are working towards finalizing the framework, but it’s quite difficult for them to provide a specific timeline since they are pursuing the matter with caution.
India Could Play a Major Role in the Crypto Boom
India is emerging as a hotspot for globalization as major tech firms around the globe are carving out their products and services based on the demand in the country. With a huge population of over a billion and the majority of that population falling in the “youth” bracket, the country for sure serves as the base for propelling any technology to new heights.
Having missed the dot com boom, the country does not want to miss out on the blockchain and crypto bandwagon. However, the government is cautious over the crypto regulation framework, given the nature of the digital asset.