With the ongoing boom in the FinTech industry, financial and regulatory bodies in India are said to be evaluating options to formulate a policy framework to deal with the trading of cryptocurrencies in India. Last month, a report claimed that the Indian Government is planning to launch its own Cryptocurrency ‘Laxmi Coin’ in the country.
The latest reports show that India’s Central Bank – The Reserve Bank of India – is working on a policy for the use of cryptocurrency in India. At a recently held event in Kolkata, deputy governor of RBI, NS Vishwanathan was asked about the state on cryptocurrencies and whether RBI would encourage such use of digital cryptocurrency in India.
Replying to this, the deputy governor said that the authorities at the Central Bank are working to bring a clear regulatory policy. He further stated :
“I can’t comment on a policy which is still in the making.”
India’s stand in dealing with cryptocurrencies has been not quite clear and so the use of cryptocurrency in India can neither be claimed completely legal or illegal. Last month, RBI executive director, Surdarshan Sen express the central bank’s discomfort in dealing with cryptoxurrencies. He said:
“Right now, we have a group of people who are looking at fiat cryptocurrencies. As regards to non-fiat cryptocurrencies like Bitcoins, I think we are not comfortable with them.”
Central Bank of India i.e, RBI is looking for centralized fiat cryptocurrency in India instead of private decentralized open source cryptocurrency like Bitcoin.
However, it has to be noted that last month was quite a bumpy ride for the cryptocurrency markets with major countries like China and South Korea cracking a whip on its operations. It is quite possible that these remarks might have come out of the increased global scrutiny and speculation pertaining to Bitcoins and the cryptocurrency markets in general.
In past year, India has witnessed a huge shift towards adopting digital transactions, especially after the demonetisation drive by the government in a attempt to unearth the unaccounted black money stashed in the form of cash. Earlier this year, India’s Finance Minister, Arun Jaitely, had admitted during a parliamentary session that India’s Bitcoin market has witnessed a “notable growth”.
Russia on the other hand is also being quite confused when it comes to cryptocurrency regulations. Russiam Ministry of Finance says that cryptocurrency miners in Russia should be registered and cryptocurrency exchanges should be licensed.
Central Bank of Russia calls for nationwide ban on Cryptocurrency Exchanges. But to the surprise, Russian President Vladmir Putin is favouring cryptocurrencies. President Putin asks central banks to not to create unnecessary barriers for cryptocurrenies in Russia.
Putin says:
“We need – based on international experience – to build a regulatory environment that will make it possible to codify relations in this sphere, reliably protect the interests of citizens, businesses, and the state and provide legal guarantees for using innovative financial instruments. It is important not to create unnecessary barriers, of course, but rather to provide essential conditions for advancing and upgrading the national financial system.
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