The aggression of the Indian authorities regarding cryptocurrency trading in India is no news. However, the Supreme Court in the country will hold a hearing regarding cryptocurrency trading on July 20. On this day, the Supreme Court will determine the fate of local cryptocurrency companies that have been banned by the Reserve Bank of India. Hopefully, the the overview might change the situation. A source (anonymous) claims that the Indian government may allow cryptocurrency trading and tag cryptocurrencies as commodities. Trading will thus be regulated by the required authorities.
Cryptocurrency Trading Battle In India
For the last few years, the regulatory authorities in India hasn’t been cohesive in its stance on cryptocurrencies. The problem started in December 2013 when the Reserve Bank of India warned cryptocurrency users about the risks of trading cryptocurrencies or engaging in the market in any way. Some of these risks include volatility, lack of security and illegal connections. As the cryptocurrency market gained more popularity, the agency continued to warn the public with the lastest warning being issued in December 2017.
Bitcoin (BTC) Price Today – BTC / USD
While they served as warnings, these letters didn’t talk about the legal status of cryptocurrencies. Some sources said that the governments passive role was a result of a lack of a coherent plan. However, after the major hike of cryptocurrencies in December 2017, the Tax department in India started a major sweep. The authorities in India took a strong stance against cryptocurrencies comparing it to ponzi schemes.
Eventually, the Reserve Bank of India announced that cryptocurrency trading was illegal. Individuals or businesses that trade cryptocurrencies will no longer enjoy services from it. Recently, however, it became obvious that the government’s ban on cryptocurrencies, pushed the industry underground making it more unregulated.
The article published by Quartz India show that banning cryptocurrencies may not have been the right move and the India government may be reconsidering. Citing an anonymous source, the article claimed that the panel set to study cryptocurrencies has recommended that they should be regarded as commodities rather than being banned. The July 20th hearing by the Supreme Court will determine the fate of cryptocurrencies in India.