According to the Minister of State for Finance Anurag Thakur, the government is considering all cryptocurrency options with an open mind to protect investors’ interests. In February, the government announced that it was working on a bill that would outlaw all private cryptocurrencies, including Bitcoin and Ether.
The government, on the other hand, has only recently begun to take a measured approach to digital assets. When it comes to cryptocurrencies, it is also quite accessible. The Reserve Bank of India is working on an Indian digital currency according to Thakur, and the government has formed an inter-ministerial committee to which secretaries have submitted a report.
Many of these factors will be taken into account in the proposed crypto bill. “We’re looking at all choices with an open mind,” the minister said. He did, however, raise some questions about the intense instability of cryptocurrencies like Bitcoin and Ethereum. “Fiat currencies do not experience such volatility. We will ensure that the Bill protects the interests of crypto investors. However, we want to be clear that we support technology.”
The Reserve Bank of India (RBI) banned the keeping and trading of cryptocurrencies in India in April 2018, citing concerns that they could disrupt the banking system and be used to promote money laundering and terrorism due to the anonymity of transactions. The ban was rescinded by the Supreme Court in March 2020, providing relief to cryptocurrency start-ups.
As a result, many cryptocurrency start-ups saw multiple fold increases in their user base. Several cryptocurrency start-ups could raise millions of dollars thanks to investments from Indian and international investment firms. Furthermore, through mergers and acquisitions, foreign crypto players began investing in the Indian market. Analysts point out that the cryptocurrency industry lacks a consistent regulatory structure, which is the most significant roadblock in the way of achieving a rounded success. Start-ups want the government to enact proper regulations on cryptocurrency investment.
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