Many are awaiting Indian cryptocurrency regulations that will probably start functioning towards year’s end. A panel was set up by the finance ministry to assess the separate treatment for blockchain technology and cryptocurrencies. Even though the RBI, plus the Narendra Modi government, have given their inclination to adopt blockchain, suspicions still hover on the latter.
Panel Yet To Suggest Regulations
A senior official of the panel says that the suggestions, with regard to the regulations, are not yet ready. The panel functions under Subhash Chandra Garg, the secretary of the department of economic affairs. In July, the proposal should start functioning, but now it is difficult. The anonymous official further says, “There are lots of issues that need understanding and lots of studying needs to be done.”
Most Important Issue
The most important problem confronting the panel is whether regulations can drive the usage of blockchain separately. The blockchain is a suburbanized public daybook for all transactions relating to cryptocurrency. This tool, minus the monetary functions, is simply a bookkeeping platform. This platform is not anyone’s own, nevertheless, it can be got at by anyone on the internet.
The official further explains, “Blockchain is an interesting thing. We definitely want to milk it effectively for financial transactions. So all officials are really trying hard to understand how to separately use blockchain, without cryptocurrency, and understanding a new software takes time.”
Crypto vs. Blockchain
In the meantime, the representatives of the cryptocurrency community in India have been trying to explain the regulations subject to the government.
Ajeet Khurana, head of the Cryptocurrency and Blockchain Committee says, “In fact, we had one meeting specifically on this topic. A public blockchain needs to have a token and you can’t have it by excluding cryptocurrencies. Moreover, a public blockchain is analogous to the internet and no one can control it.”
And even though the committee is open to additional discussion, the elimination of cryptocurrency appears rather challenging to them. Regulations might be an easier step.
Nevertheless, the cryptocurrency ecosystem in India is already in a corner now. The RBI early this year gave orders to the banks not to do any kind of business with the exchanges. Following this, a lot of exchanges have taken the case to the Supreme Court. On September 11th, the case go for hearing in the Supreme Court of India.
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