India, now acknowledges that financial technology firms depend on the blockchain. Also, the Finance Minister of the Country expresses an understanding that the technology backing cryptocurrencies is the blockchain technology.
Nirmala Sitaraman, Finance Minister stated, “From our side, we are very clear that we are not shutting all options. We will allow certain windows for people to do experiments on blockchain, Bitcoins or cryptocurrency.”
The Finance Minister also acknowledged that Fintech depends upon such experiments and that they will have that window made available.
The cabinet accordingly to the finance minister of India are working on a formulation/regulation that will be ready soon. The regulation according to sources is getting ready and it is nearing completion.
The Finance Minister also stated, “A lot of fintech companies have made a lot of progress on it. We have got several presentations. Much work at the state level is happening. And, we want to take it in a big way in IFSC or Gift City in Gandhinagar.”
Of note, the Supreme Court of India has made a comment on cryptocurrency. It is expected that the Reserve Bank of India will likely take a call on an official cryptocurrency.
The Finance Minister has stated once Parliament is over, I will probably spend more time executing and planning on that. On fintech and blockchain, there is a lot of work going on in India and we will certainly encourage that.
It is very clear that the existing laws are not enough to deal with the subject.
It is important to recollect that the SC, in March 2020, struck down RBI’s instructions on banks refraining from providing services to crypto trading platforms, thus creating uncertainty about the status of virtual currencies in India.
It is only with new legislation that the government’s stand on cryptocurrencies will be clarified.
Previously, an inter-ministerial committee (IMC), which is headed by former finance secretary Subhash Chandra Garg, suggested a draft Bill to ban cryptocurrencies.
There was a question made in this regard in the parliament and the Finance Minister reportedly has stated, “The government will take a decision on recommendations of the IMC.”
It just looks like even countries who absolutely did not want to deal with cryptocurrencies are now trying to do something about creating a window to accept it. The Fintech sector seems to be benefiting from the blockchain technology, and in the process it might be hard for them to undo cryptocurrency 100%.
