The monsoon session for the Indian parliament is scheduled to begin on July 19 and commence by the second week of August. Among various agendas and bills up for discussion, the crypto communities have their eye set on the Crypto bill. The excitement is higher this time around since inside reports have suggested a positive change in the stance of the government towards the crypto ecosystem with one report indicating that the government is looking to classify Bitcoin as an asset class rather than outright banning it.
The crypto bill was tabled during the last budget session as well, but couldn’t be discussed owing to Covid restrictions curtailing the parliamentary session. A lot has changed in the flourishing Indian crypto ecosystem since the first proposed blanket ban by the government-appointed committee. First and foremost the strict stance about crypto being bad has changed drastically as deputy finance minister Anurag Thakur has suggested that the government is studying all aspects of the new asset class and will regulate it accordingly.
Even after the 2020 Supreme Court verdict, overruling the banking ban imposed by the Indian central bank RBI, many banks refused to offer their service to crypto exchanges and even warned customers to refrain from any form of crypto transactions. Some banks even used the quashed circular from 2018 to warn customers. RBI came forward to clarify that banks cannot and should not use the 2018 circular to deny crypto-related transactions.
Investment of Indians in Crypto Spike by 1900% in One Year
A recent Chainalysis report revealed that the investment by Indians in cryptocurrencies such as Bitcoin and Dogecoin has risen by over 1,900% within one year, growing from $200 million to $4 billion. The most important fact though, Indians gave up gold to invest in crypto. Gold has been a core part of every Indian household investment over the decades, thus it shows the growing influence of crypto in India despite regulatory concerns.
The Indian government cannot ignore and outright ban a budding ecosystem that has grown in leap and bounds despite the uncertainty. By positively regulating the crypto sector, the Indian government can create a new tax stream and also generate new jobs.
India Government Cannot Afford to Ignore Crypto Anymore
Different countries have tried banning Bitcoin and cryptocurrencies from time to time, and on most of those occasions, the ban has backfired, compelling those governments to take back the ban. This year crypto has risen to become a formidable investment choice for some of the biggest asset managers, hedge fund managers, and a legal tender for El Salvador. At a time when other nations are looking to regulate crypto positively, India cannot risk another few years of regulatory ignorance.
India has some of the most talented pool of developers and crypto projects that have already made a name for themselves, a positive push from the government from here would only elevate the thriving ecosystem to make a mark in the decentralized world.