If you have been living in India then you would know how rocky the past year has been for the Indian cryptocurrency landscape. The Finance Ministry has been warning Indian citizens to stay away from investing in crypto for a while now and last year the Reserve Bank of India prohibited all banks that it regulates to end all relationships with any entity dealing in crypto.
That last bit came as a surprise for anyone involved and took the crypto community by storm. There was a lot of FUD that went around for months. Zebpay, one of India's largest exchanges had to pack up and leave while other newer exchanges came up with P2P models so that the crypto users could still participate.
Still, there was a lot of fear about what the government might do about crpyo as conflicting reports were surfacing just about every month. Many feared that we could face a blanket ban on crypto in India. But now it seems that the tides may be turning.
Positive Regulations Ahead?
I was scrolling my Twitter feed today and I saw a tweet about an article by news.bitcoin.com that said that the Indian government had invited a law firm to present its recommendations to the committee coming up with draft crypto regulations.
The interesting thing about this particular news is that the lawyers that were invited represent the Internet and Mobile Association of India (IAMAI) in its case against the RBI's banking ban.
The lawyers have suggested that crypto should be regulated and not banned and have also recommended ways it can be done. As per one of the lawyers, the committee listened "with interest".
One interesting proposal from the lawyers was the classify the many different cryptocurrencies into three categories: security tokens, utility tokens and payment tokens. Hopefully this explanation would give a greater clarity to the community if there was any confusion for the latter.
In my opinion, this is a very positive news and it just might mean that the government won't ban cryptocurrencies but allow the use/trading of it with some conditions, allowing the community to finally flourish after a hellish 10 months.