Incoming Bill Could Be a Sucker Punch For Indian Cryptocurrency
The banning of Cryptocurrency and Regulation of Offical Digital Currency Bill, 2019 is the last roll of the dice for the crypto cynics in the country, albeit a dangerous one. Siddharth Mahajan, a partner at Law firm Athena legal told business insider that it is still unclear whether there would be a thaw in the government's approach given the judgement of the Supreme Court and they soften their stance on crypto regulations.
If the regulations ultimately make their way, they would differentiate between utility tokens, cryptocurrencies and digital currencies; each carries different characteristics.
According to Srinivas Katta, from Induslaw, RBI won't concern itself with the equity token. As long as the utility token follow their dogmas and taxes are on time, RBI would not really give it much of a thought.
India Not Completely Crypto-Ready
Cryptocurrency in India even if they overcome this dilemma is still far from turning into the currency of the country. It's still lagging and has got miles to go before it could even be included in the conversation, said Mahajan.
He also opines that firstly, for a while crypto should be allowed a free run, eluded from regulations of any sort. Then, their future could be mapped out in such a way that it leads to a more inclusive economy.
It will be getting ahead of ourselves if we perceive that just not being illegal would lead the government to take a possible preposterous call to run a total decentralized system in India. The crypto community can keep their fingers crossed that the bill doesn't knock the wind out of the newly found wind out of the crypto sail. It would be welcoming to the Indian crypto community even if the government allows cryptocurrencies to run parallel to the current financial system prevalent in the country.
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