After months of uncertainty, there are indications that India may not, after all, opt for a blanket ban on virtual currencies. A finance ministry panel set up to study them may even suggest that they be treated as commodities.
Cryptocurrencies are Commodities
The government in India via the ministry of finance set up a committee to examine the country’s cryptocurrency market. According to an anonymous source with inside knowledge of the committee’s deliberations, there is no plan to ban cryptos in India just yet. The source also went on to say:
"I don’t think anyone is thinking of banning cryptocurrencies altogether. 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"
“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?” the official added.
It is not entirely clear why the RBI decided to bar financial institutions from dealing with crypto-related businesses. What’s more, central bankers were unable to justify their ruling according to an information request submitted by a New Delhi lawyer shortly after the ban was announced.
Should the Indian government classify cryptocurrencies as commodities? What impact do you think positive regulations from India would have on the cryptocurrency market? Let me know your thoughts in the comment section below.
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