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It is likely that India's long-standing saga on the legality of cryptocurrency will see the lifting of the current ban in 2019.
Indian flip flops
Reports suggest that the government-led committee, which discusses the issue, is in favor of legalization, albeit with strong regulations.
India was one of the first to adopt Bitcoin, prompting the Reserve Bank of India (RBI) to release its first cryptocurrency warning in December 2013. But the Indians continued to embrace cryptocurrency with a fervor similar only to increases of animosity towards the RBI.
Despite this, it is interesting to note that RBI was considering his own cryptocurrency, Lakshmi, in September 2017. In the end, however, it seems that the bank considered the ban a better solution.
But who has forbidden what exactly?
In April of this year, the RBI ordered financial institutions to stop providing services to companies involved in cryptocurrency. Companies were granted a three-month grace period, so the ban entered into force on 5 July.
However, although the central bank's position on the issue was made quite explicit, the government's position seemed to be increasingly inconsistent with this. The reports stated that the Indian government did not intend to impose a total ban on cryptocurrency.
Confusion in progress
Lawyers for industry workers are locked in an ongoing legal battle to repeal the ban on RBI, which was allegedly implemented without any research being conducted.
RBI Headquarters in Mumbai
The government has deliberated its final decision, suggesting that it could reach some conclusions before the end of the year. Meanwhile, the Supreme Court gave the government a two-week deadline to provide some clarity in October – which it missed.
The resolution date suggested by the government has again slipped back and this latest report suggests that the committee's recommendations will arrive in February 2019 (a further delay).
When is clarity
Companies are queuing to (re) enter the Indian market if the ban is finally lifted.
This includes the social media giant, Facebook, who is supposed to be working on a stable currency for WhatsApp. It is said that the initial focus of this enterprise is the remittance market in India.
Will India eventually lift the ban on cryptocurrency? Share your thoughts below!
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