• Indian Minister has said that crypto transactions are not prohibited as long as they follow existing laws.
• This comes two weeks before the annual budget and indicates that the government may go soft on crypto regulations.
• This is in contrast to the RBI’s ban on crypto in 2018 and not fully opening up to the sector even when the Supreme Court scrapped the RBI order in 2022.
In a major development that could signal a shift in the Indian government’s stance towards cryptocurrencies, a junior minister has said that cryptocurrency transactions are not prohibited as long as they follow existing laws. This comes barely two weeks before the government’s annual budget and could be an indication that the government may go soft on cryptocurrency regulations in the upcoming budget.
This stands in stark contrast to the Reserve Bank of India’s (RBI) ban on cryptocurrency in 2018 and their refusal to open up to the sector even when the Supreme Court of India scrapped the RBI order in 2022, calling it illegal. Rajeev Chandra, the junior minister, stated that there is nothing that currently outlaws cryptocurrency as long as the legal process is followed. This is seen as a major change in the government’s stance towards cryptocurrency, which has been largely negative in recent years.
The government’s stance towards cryptocurrency is seen as important as the sector is expected to grow in India. According to a recent report, the cryptocurrency industry in India could be worth over $60 billion by 2025. This is due to the growing acceptance of cryptocurrency around the world, as well as in India.
The Indian government is also expected to introduce regulations for the cryptocurrency sector in the upcoming budget. These regulations could include tax breaks for businesses dealing in cryptocurrencies and other incentives for companies operating in the space. These regulations could pave the way for a more mature and regulated sector in India.
The government’s stance towards cryptocurrency is also being watched closely by players in the sector. Many industry players have said that they are hopeful that the government will take a more positive stance towards the sector in the upcoming budget. This could lead to more investments and the growth of the sector in India.
The upcoming budget could be a major milestone in the Indian cryptocurrency sector. It remains to be seen how the government plans to regulate the sector and what incentives they plan to offer to businesses operating in the space. Whatever the government decides, it is sure to have a major impact on the future of the sector in India.