India has shared its plans to regulate cryptocurrency instead of banning it altogether like it previously intended.
The Prime Minister of India, Narendra Modi, led a meeting in which officials, who came from the highest offices in India’s financial space, reached an agreement to regulate the crypto sector rather than banning it. Formulations and implementations of positive regulatory plans are underway, a source reported.
Although the officials are convinced of their decision to not ban crypto anymore, concerns about risks of money laundering and terror financing that comes with the digital assets arose. They do understand that this is a volatile and evolving technology and will do their best in taking proactive measures and keeping a close watch on the sectos.
There was also a unanimity that the measures taken in the sector by the government will be progressive and forward-looking. The government will be working with local experts and other stakeholders in order to come up with stable regulations that will help push the growing market forward. It is also open to accepting help from experts beyond India as cryptocurrencies span the global financial space.
The outcome of the meeting is a big win for the cryptocurrency industry in India as the country has a huge crypto sector which has been growing at an extremely aggressive rate. India has over 100 million cryptocurrency owners, making it the largest market in the world and four times higher than the United States which is second-placed.
Despite the consistent rapid growth, the government has been slow to catch up. The RBI (Reserve Bank of India) has even been persistently trying to shut down the sector by imposing a ban on all banks from working with cryptocurrency firms and users, but lifted it earlier this year.
The country’s government has been considering a blanket ban for cryptocurrencies for several months now. The regulation plan wasn’t what was expected at all. The governor of RBI, however, remains pessimistic as ever as he keeps on attacking Bitcoin.