With the new Indian regulatory panel formation, the union government is now rethinking its ban on crypto assets, the local media reported. The Economic Times quoted three sources related to the ongoing discussion on forming the new panel to control the growing crypto market.
This announcement comes as the crypto assets see mainstream adoption of digital assets in India and the increasing support for overturning the recommendation from Subhash Garg, the country’s former finance minister, who argued for a ban saying that the crypto assets have become outdated. The Indian media outlet reported,
There is a view within the government that the recommendations made by Subhash Garg are dated and a fresh look is needed at the use of cryptos rather than a total ban.
It further added that the new government panel is likely to hold investigations into cryptocurrencies and the potential ways to regulate the growing digital market. It is also likely that the board may work closely with India’s central bank.
Besides that, the media report also stated the Indian minister of corporate affairs and finance, Anurag Thakur, may also join the new regulatory panel. Previously, Prime Minister Modi’s finance minister has also openly stated that the central government would prioritize a calibrated effort to regulate the digital market.
In 2018, the Indian central bank asked all the private banks to halt their crypto-related services. However, two years down the lane, after supporters of the crypto assets and fintech industry filed a petition, the country’s apex court overturned the ban.
In recent months, there have been numerous media reports claiming that the government is planning to reimpose a complete ban on the trade of the new digital currencies. Besides that, the new crypto regulation bill was set to be tabled in the national parliament two months ago, and it was deferred for undisclosed reasons.