Indian Government Could Reneg on Crypto Ban, Turn to Commodity Classification InsteadJul 12, 2018, 11:10AM
The Indian government appears unlikely to follow through with its all-out ban of cryptocurrency, instead turning to a commodity classification.
It appears the Indian government may yet again waffle with its stance on cryptocurrency. The Reserve Bank of India decided to instill a complete ban on everything crypto late last month. However, the expected July 5th deadline has come and gone with limited consequence. More recent conversation suggests the Asian subcontinent may simply reclassify cryptocurrencies and digital assets as a whole.
According to an anonymous government official,
The issue here is about regulating the trade and we need to know where the money is coming from. Allowing it as (a) commodity may let us better regulate trade and so that is being looked at.
Strict policies against cryptocurrencies have become a standard to fight the illegal and illicit use of digital assets. Trading tokens anonymously allows criminal parties to launder money and facilitate fraudulent activities more easily. Federal institutions in China and Russia remain firm against these emerging technologies, while some nations (South Korea and India for example) remain optimistic and progressive with their mindset.
Trade is not a criminal offence. Most of us trade in various asset classes in the stock market. So how is this (cryptocurrency trading) any different?
Transitioning to a new classification for cryptocurrencies should help mitigate the mystery in digital trading. Commodities (and any trackable securities) become more easily regulated - empowering governing agencies, whether public or private. The back-and-forth positioning from Indian officials means nothing is concrete, but this is at least a promising sign for more the further adoption of cryptocurrency.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.