India plans to take ‘middle path’ with crypto bill

The modified regulation of India’s cryptocurrency industry could well be on its way this winter, according to the government.

India has grown into a crypto hotspot over the last year with the market increasing by 39% between 2020 and 2021, according to the National Association of Software and Service Companies (NASSCOM) and crypto exchange WazirX.

The increasing popularity of the industry, especially among young people, has led the Indian government to take a ‘middle ground’ approach to the regulation of crypto that may be introduced this winter.

An unnamed government source said a ban on cryptocurrency, a course of action India has previously taken, was not possible, and other proposals must be discussed.

“A balance has to be found, a middle path that balances the concerns of all stakeholders is more likely,” said the source.

With the winter session of parliament beginning on November 29, presentations to the government have already begun, discussing the pros and cons of cryptocurrency with the Reserve Bank of India (RBI) persisting on its rejection against crypto.

The RBI has been criticised for its unceasing approach towards cryptocurrency and its stubbornness towards the digital economy.

It prefers the introduction of a Central Bank Digital Currency (CBDC) in which it published a report where it discussed the advantages of an establishment of a CBDC.

“The Committee notes several benefits of digital currency, including the instantaneous settlement of transactions, reduction of costs of cash, ability to provide a more comprehensive and unified source of credit history and reduction in instances of tax avoidance,” the report stated.