Indian appears to be taking a progressive stance on Bitcoin (BTC). Especially in the context of this country trying to get a unified view of the classification and legitimacy of this new asset class.
Amid a spate of cabinet meetings, industry interviews, and banking-related questions, the country’s prime minister has increasingly taken on cryptocurrencies.
At the Sydney Dialogue, Prime Minister Narendra Modi Is called for democratic countries to work together to make the most of cryptocurrencies and blockchain technology. He also stated that they should not be used for unethical purposes.
Take, for example, cryptocurrency or bitcoin.
It is important that all democratic nations work together to ensure that it does not fall into the wrong hands, which can ruin our youth: PM @narendramodi
– PMO India (@PMOIndia) November 18, 2021
On Monday, Prime Minister Modi spoke at a high-level meeting on cryptocurrencies in the context of money laundering and terrorist financing. The general atmosphere of the meeting suggests that strict regulatory measures are in place, albeit of a forward-looking and progressive nature.
The Indian government has previously taken steps to build a robust regulatory infrastructure for the fast growing sector. Many high-level conversations were held, including one between the Central Bank (RBI), the Treasury and Home Office, as well as crypto experts and key industry participants from India and beyond.
Despite the objective views of several government ministers, RBI Governor Shaktikanta Das was not convinced. On Tuesday, the CEO reiterated his stance that licensing cryptocurrency exchanges could jeopardize any financial system as they are not overseen by central banks.
Related: Indian’s leading payments company Paytm is reportedly considering Bitcoin services
Despite the rising popularity of cryptocurrencies in India, lawmakers remain divided over the need for a comprehensive regulatory system. Bitcoin law is expected to be presented to Indian lawmakers in the next session. Many hope that this will bring peace and clarity to investors and institutions.
As Cointelegraph reports, India plans to cut goods and services tax (GST) on crypto exchanges from 18% to 1% through a regulatory reclassification. In addition, the president of the Peruvian Central Bank recently announced that his country will join forces with India and two other countries to create its own central bank digital currency, although crypto regulation in India is still in the dark.