India May Reconsider Cryptocurrency Stance, Forms New Regulatory Panel

Reports are emerging that the government of India may be reconsidering its stance on cryptocurrencies with the formation of a new regulatory panel.

May 19, 2021, | AtoZ Markets – As efforts to create FUD (fear, uncertainty, doubt) in the cryptocurrency market continue, good news came from India, one of the world's most populous countries. The government of India is considering changing the perspective on cryptocurrencies.

The country in South Asia that previously viewed cryptocurrencies negatively and considered banning, will now establish a team of experts to explore the benefits of blockchain technology.

Discussions are at an early stage

According to the report by The Economic Times (ET), citing knowledgeable sources, the initiative is at the initial stage of discussion as a formal decision has not yet been made.

In 2019, a working group under the Government of India concluded that there is “no value” at the heart of these financial instruments and recommended that they be banned. According to the source of the publication, some officials consider these findings outdated.
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According to ET, the Ministry of Finance of India is monitoring the growing turnover of cryptocurrencies in the country and is discussing potential regulatory risks with stakeholders.

Anurag Thakur, Minister of State of India, may join the committee. It is reported that he previously discussed this issue with representatives of the banking and cryptocurrency industries.

Read also: No Cryptocurrency Ban in India, Finance Minister Confirms

Recall that from April 2021, Indian companies are required to report transactions with digital assets, volume, as well as advances and deposits "from any person."

According to media reports, the local parliament considered a bill to ban cryptocurrencies during the last budget session.

Bloomberg reported in February that if the ban were imposed, asset holders would have three to six months to close positions.

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