India has a turbulent relationship with cryptocurrencies throughout 2018, but as India’s various fiscal and regulatory agencies begin to synchronize their views on the future of cryptocurrencies, they are further studying the best form of cryptocurrency regulation.
According to reports from the Quartz India media, the Securities and Exchange Commission of India (SEBI) has sent teams to countries to better study and understand the regulatory measures being taken in these countries.
The countries in which SEBI dispatched teams include Japan, the United Kingdom and Switzerland, all of which have adopted a “no blow” approach to the cryptocurrency market. In these countries, the team visited various regulators to discuss how these countries deal with cryptocurrency, initial token products (ICO) and exchange regulations.
The Central Government of India is also studying cryptocurrency regulations and requires the establishment of a committee whose sole purpose is to study and conclude how cryptocurrencies should be regulated. The committee is led by Ajay Tyagi, who is also the chairman of SEBI, and other members include BP Kanungo, deputy director of the Reserve Bank of India (RBI).
India’s complex cryptocurrency history and cryptocurrency regulation
The complex relationship between India and cryptocurrency began in April, when the government took an unprecedented action to ban cryptocurrency transactions, restricting citizens from trading in virtual currency.
At the time of the ban, the Reserve Bank of India issued a statement saying:
Financial institutions regulated by RBI may not provide cryptocurrency services to any individual or business entity. Regulated entities that have provided such services are subject to termination within the specified time.
RBI’s cryptocurrency ban continues to be protested by many cryptocurrency investors and companies, leaving government officials to clarify the ban:
No one really wants to completely ban cryptocurrencies. The problem here is about regulatory transactions, and we need to know the source of the funds. Allowing it to be a (a) commodity allows us to better regulate trade and is therefore considering it.
After many other conflicting statements and actions by members of various government groups in India, it seems that India has taken action to finalize cryptocurrency regulations.
The media first reported in August that the financial sector team devoted to cryptocurrency regulations specifically postponed their report on how to best regulate the industry in unforeseen time, but a member of the group who asked not to be named made A positive statement, he said:
Blockchain is an interesting thing. We certainly want to be effective in preparing for financial transactions. Therefore, all officials are trying to understand how to use the blockchain alone without cryptocurrencies… and it takes time to understand the new technology.
The latest report seems to confirm this sentiment, proving that Indian regulators are seriously studying how to best monitor the blockchain and cryptocurrency industries with inspiration from regulatory measures in other countries.