The future of cryptocurrency in India remains unclear. A final ruling by the Supreme Court will take place on September 11th. Despite mixed signals from the government, SEBI remains keen on Bitcoin and altcoins. Instead of a ban, the agency aims to understand exactly how cryptocurrency works.
Knowledge is Power for SEBI
The current cryptocurrency situation in India looks anything but promising. Cryptocurrency trading was outlawed by the country’s central bank several months ago and ever since then, the wait has begun for official Bitcoin regulation. So far, those guidelines have not been officially presented, leading to a rather uneasy situation. Various Bitcoin firms are not waiting around for this verdict either. They have taken their case to the Indian Supreme Court to have the RBI trading ban overturned.
That decision will be made in the coming week. Regardless of this development, the SEBI is still examining what makes cryptocurrencies tick. This agency is not in favor of an outright ban on Bitcoin and altcoins. Instead, they maintain that “knowledge is power.” Gaining a better understanding of these markets will lead to a more robust ecosystem and Indian economy alike.
To gain more knowledge, SEBI has sent teams on an international tour. Through this venture, the agency collects information from regulators around the world. Different countries tackle cryptocurrency regulation in many unique ways. Very few regions have made it outright illegal to trade fiat currency for Bitcoin. China is one of the biggest exceptions in this regard. It remains unclear if India will follow down a similar path.
Rethinking the Initial Decision
The SEBI news comes at a crucial time for cryptocurrency in India. The central bank made it clear they may have made a hasty decision by banning cryptocurrency trading. Last week, a spokesperson indicated it might not have been the best approach, all things considered. That message gives enthusiasts a glimpse of hope as they wait for the Supreme Court’s final verdict.
Overall, the Indian government seems interested in learning more about cryptocurrencies. Regulating these volatile markets can be done in many different ways. An outright ban on trading should only be considered to be the last resort, rather than a first step. Until any results of these positive attempts to gain knowledge become apparent, nothing will really change in India. This causes some frustration among cryptocurrency enthusiasts.
The coming days will be crucial for the future of cryptocurrency in India. Reinforcing the current ban will not cause any major shockwaves. Reversing the decision by the RBI, however, would send a clear signal to the rest of the world. Banks are not the ones to officially regulate Bitcoin. That job belongs to policymakers and government officials first and foremost.
Do you think that the RBI will overturn the ban on cryptocurrency trading? Does SEBI’s interest in understanding crypto rather than banning it bode well or is it merely lip service? Let us know in the comments below.
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