Indian Government Is Deliberating on the Regulatory Framework of the Cryptocurrency

By Maheen Hernandez July 8, 2019 Off
bitcoin india

Subhash Garg, Economic affairs secretary India stated, “But whatever it is, it would be a private cryptocurrency, and that’s not something we have been comfortable with.”  He further reinstated, “Design of the Facebook currency has not been fully explained.”

The Reserve Bank of India has already placed restrictions concerning cryptocurrencies and has called for stringent penalties for the use of cryptocurrencies.  Facebook, in the past month, revealed their plans for the launch of Libra.  The launch has been declared to be taking place in 2020.  Libra is likely to be a stable coin.  India is a vast user base for Libra, but before it can tap into the user base, there are a lot of regulatory hurdles it has to cross.

The Indian law mandates that Bitcoin should be treated as a currency as the Indian law mandates securities to be existing in metal or physical form, which is stamped by the government.  Those who mine, hold or sell Bitcoin will be proposed a jail term of nearly ten years per the Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019.

High Ranking police officers in India are to be educated about cryptocurrency.  The training will involve investigation of cases which include cryptocurrencies.  The Indian police are regularly uncovering crypto-related schemes, and the government is deliberating on the regulatory framework of the cryptocurrency.

The course will be titled “Investigation of cases involving cryptocurrencies.”  Officers will be learning more about the “legal aspects of cryptocurrencies; crimes committed using cryptocurrencies, [and] investigation of cases involving cryptocurrencies.”

“The trained officers will be posted as Assistant Superintendent of Police (ASP) in their respective states under whom the other sub-ranks of [the] police force will be working.”  These IPS cadre officers can be removed only by the order from the president of India.

The short period of consolidation is getting over, and the market is moving all over again.  The market share of Bitcoin went down by 62.2%.

Most of the Z generation are not planning to buy the cryptocurrency.  In a recent survey, participants were surveyed about how likely they might purchase a cryptocurrency over the next six months, and nearly 52% of them stated: “not at all.” About 5% of them said “extremely likely,” and 6% indicated “very likely” and 15% stated “somewhat likely” 17% felt “not likely” 4% gave answers which are unspecified.

Business Insider remarked: “The reinvigorated market could cause some of the teens in the survey to rethink their position, and it may spur the 26% who said they were somewhat likely, very likely, or extremely likely to purchase cryptocurrency to pull the trigger.”