India’s New Policy Claims Holding Unapproved Cryptos Illegal
Moneycontrol reported that a committee under the management of Subhash Chandra Garg, India’s Secretary for Economic Affairs, is proposing policy amendments that may make holding governmentally unapproved digital assets illegal.
Moneycontrol, an Indian publication focused on financial news, stated that the aforementioned committee has reached the final stages of determining these amendments. In addition to establishing amended legislation and punishments associated with breaching these policies, the committee is also defining legal repercussions doled out to those who challenge these laws.
This decision to zero in on digital asset legislation is indicative of India’s government’s negative perspective on unregulated cryptocurrencies believing that they should be removed from the nation’s financial sphere in order to deter instances such as tax evasion, fraud, and other marketing schemes.
Such Policies Won't Surprise Indian Crypto Users
Garg’s panel was first established in 2017 and is scheduled to submit policy changes by this December. The committee is also heavily associated with members from the nation’s central bank and its market regulators.
If this latest policy revision is submitted as expected, it will pose no surprise considering the already strong anti-crypto stance held by a variety of Indian government organizations. This April the RBI banned banks and other financial entities from interacting with any crypto-based business. In addition, it also prohibited their client base from purchasing digital assets.
According to CCN, the RBI stated that under immediate effect, all financial entities under the RBI regulation shall not participate nor offer services to companies or individuals utilizing cryptocurrencies. For those that had already established such services must halt all interactions within a given timeframe.
The Ongoing Crash Of India’s Crypto Industry
Months have gone by since the initial crypto ban within the Indian economy and major repercussions continue to affect the nation’s crypto sphere. This September, Zebpay, one of the largest digital asset exchanges worldwide ranking sixth in GPD, was forced to shut down due to a lack of operations and cooperation with national banks and financial services. This major policy restriction has continued to spread through the crypto ecosystem in India and has now majorly affected the blockchain industry as well.
According to CCN, a report issued one month ago stated that the ban was leading to a major migration of blockchain capital out of the country and into regions with more cooperative environments. These countries include Malta, Switzerland, Thailand, and Estonia who have each taken the initiative to create regulatory policies that both establishes secure transactions as well as helps the emerging industries survive and grow.