The Reserve Bank of India (RBI) seems to be looking at a possible reversal of its controversial decision to ban cryptocurrencies in the country.
A recent report by local news agency Quartz suggests that a committee set up to study the digital currency industry may be considering an option to categorize cryptocurrencies as commodities.
Indian citizens were quick to adopt cryptocurrencies due to the many benefits that they appeared to offer. However, as soon as their popularity grew in the country the government cracked down and banned all financial institutions from dealing in them. Now the finance ministry is looking for the best way to legalize them again while simultaneously reducing the criminal risks it believes are associated with them.
An anonymous member from the committee was quoted as saying, “I don’t think anyone is really thinking of banning cryptocurrencies altogether. The issue here is about regulating the trade, and we need to know where the money is coming from.”
Money-laundering is one of the biggest issues the ministry associates with cryptocurrency. This was the key issue that brought about the ban that was issued in April this year and came into effect last month. Skeptics believe that the local government wants to develop a cryptocurrency of its own and keep other individuals and organizations out of the industry. However, if this new information is correct then they may simply be trying to introduce workable regulation before opening the market.
Last month the head of the cryptocurrency panel, Subhash Chandra Garg, told a local news channel that regulations will be ready by the end of July.
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