The Indian government is likely to ban the use of cryptocurrencies for transactions and payments but will recognize them as assets.
Analysts tell MoneyCentral that the Nigerian Federal Government and Central Bank should take note of best practices in the regulation of crypto currencies globally and begin to make Nigeria a hub for blockchain and crypto development and trading on the African continent.
The Economic Times reported that the Modi government will introduce a crypto regulation bill in the winter session of Parliament. The newspaper said the bill’s final details are being worked out, citing sources familiar with the matter.
Additionally, the government will ban “active solicitation” from crypto firms, including exchanges and platforms. That means that there will be a ban on advertising crypto and crypto products. In anticipation of regulatory clampdowns, cryptocurrency exchanges like WazirX and Bitbins have already stopped advertising.
Some crypto lovers took a dig at the government’s approach, saying that the Modi government wants to build a “Digital India,” yet contradicts itself by planning to ban crypto, a highly-digital ecosystem.
Despite the Modi government’s love/hate relationship towards crypto, there won’t be a blanket ban on crypto.
Instead, the bill will represent a middle ground, ET reported. A person familiar with the matter told the newspaper: “The overall view within the government is that the steps taken should be proactive, progressive, and forward-looking as it was an evolving technology.”
A meeting with crypto industry representatives was held earlier this week to discuss the steps needed to be taken in the coming days.
There is a possibility that the Securities and Exchange Board of India (SEBI), India’s financial watchdog, will be designated as the regulator, but that has yet to be confirmed, per the report.
India’s stand on crypto has always been confusing.
For instance, the Reserve Bank of India (RBI) is currently experimenting with central bank digital currencies (CBDCs), but RBI’s Governor Shaktikanta Das also believes blockchain technology can grow without cryptocurrencies.
Despite all the hurdles, India’s digital currency market reached $6.6 billion in May 2021, compared to $923 million in April 2020. Experts believe that the new bill will settle the dust, and favorable regulations will help the country grow in the crypto sector.