Indian Government panel finally submits crypto report on 12/11

[avikz]

An Indian Government panel led by Mr. Subhash Chandra Garg finally submitted the most awaited crypto report to country’s finance minister, suggesting a new legal framework for cryptocurrencies.

While it is not yet clear whether the report talks about crypto legalization or Ban, CNBC TV18 reported on Friday quoting an anonymous source,

Ending the speculation on virtual currencies such as cryptocurrencies and bitcoins, a government panel has suggested that the government should consider framing a new law for regulating that space.

However, this is all speculation and no one is clear yet on the report. However, looking at the current government, I don't see much hope for cryptos in India. What do you think?

News source: https://news.bitcoin.com/indian-government-cryptocurrency-recommendations/

[buwaytress]

Well in the last formal statement about the government's responsibilities in carrying out the research and findings leading up to this report, it HAD admitted that it had done anything but actual research or study, so any earlier rule had not been sufficiently justified.

There's a history of the country's leadership trying to save face by insisting on past decisions, so perhaps they have made all the necessary fabrication needed to justify the current plan of action. On the other hand, can the country really look the other way and continue to see its brightest minds and enterprise leave the country?

Meanwhile, LBC traders are happily exchanging Bitcoin on the streets. India will want a piece of the pie, if not now, later down the line. So framing new laws only seems the sensible thing.

[senin]

Finally, we have waited for at least some official reaction of the Indian government about cryptocurrency. Although the report is unclear about the position of the government itself and simply suggested to the relevant authorities to regulate it, however, this is also pretty good news. Regulation is no longer a ban. In addition, a special commission previously set up by this government has concluded that the cryptocurrency can be used as a means of payment. Also, the greetings of India sent their representatives to exchange experiences in the field of cryptocurrency precisely in countries friendly to cryptocurrency - Japan, Switzerland. Therefore, I think that as a result, India should join the states that accept cryptocurrency.

[avikz]

Meanwhile, LBC traders are happily exchanging Bitcoin on the streets. India will want a piece of the pie, if not now, later down the line. So framing new laws only seems the sensible thing.

That's one of the hopes I have here! Since government also know that they can't stop these trades, they probably want to earn something out of it. Otherwise, the kind of orthodox mentality our current government has, doesn't give me a good hope for anything positive to happen. We are at the mercy of bureaucrats and politicians!

[BitHodler]

Meanwhile, LBC traders are happily exchanging Bitcoin on the streets. India will want a piece of the pie, if not now, later down the line. So framing new laws only seems the sensible thing.

That, and it makes way more sense to build a strong web of regulations around crypto than to ban it where possible, because bans have proven to drive the herd to local markets where governments have zero control.

I have always thought of regulations to be a far more powerful tool for governments to use--abuse against people in order to keep check of money flows and whatnot.

I think that it's only a matter of time before we can expect similar action from China. Overall, less hostile measures against crypto is always a plus in my book, so let's have that work in our favor to grow further.

[Harlot]

Whatever it contains it must be good the situation in their country is bad already as even their own crypto exchanges are shutting down within their country, the bad thing about this is they are looking to continue their business outside of the country. These legal framework must also be clear on showing the limits on what RBI can impose to these exchanges as right now they are acting as if they are the highest power in their country when it comes to cryptocurrencies that even their supreme court is having a hard time to come up with a decision.

[buwaytress]

Meanwhile, LBC traders are happily exchanging Bitcoin on the streets. India will want a piece of the pie, if not now, later down the line. So framing new laws only seems the sensible thing.

That, and it makes way more sense to build a strong web of regulations around crypto than to ban it where possible, because bans have proven to drive the herd to local markets where governments have zero control.

I have always thought of regulations to be a far more powerful tool for governments to use--abuse against people in order to keep check of money flows and whatnot.

I think that it's only a matter of time before we can expect similar action from China. Overall, less hostile measures against crypto is always a plus in my book, so let's have that work in our favor to grow further.

You'd think with all the lessons learnt from past government practices, India might have done the smart thing. Their economy's in desperate need of innovation and liberalisation and they already invested so much into two generations to equip them with the engineering and technical skills. Shame as it is the brain drain is happening more rapidly, be a real shame if the state doesn't want to partake in the inevitable with Bitcoin, and take its place in helping its people embrace the new economy.

But let's see. Maybe this is, after all, their attempt to smell the coffee. And maybe you're right, China too will acquiesce.

[BuyBuyBitcoin]

This is the same government that watched the rupee continue to lose confidence and value.

https://www.bloomberg.com/opinion/articles/2018-09-10/the-rupee-is-one-of-asia-s-worst-performing-currencies-this-year

The Indian rupee has been sliding against the U.S. dollar in recent days as emerging markets come under pressure. That’s made the currency one of Asia’s worst performers, losing 12 percent this year.

It's a foregone conclusion that people in India wanted off the rupee a couple decades ago... it always loses value.

[magneto]

Exactly as buwaytress said, it simply makes no senes for the government not to try to regulate bitcoin instead of attempting to restrict access to using it altogether. Not only is an outright ban completely unnecessary, and impossible to enforce, they are also missing out on potential tax revenue that could be generated from a regulated environment.

Of course, this is just a report and it's unclear what the ministers in India will do with it. But at this point, I don't think it matters that much because of the abundance of resources outside of regulated exchanges that exist in India, including stablecoins etc. that can be used to circumvent bans from the central bank.

Even if the ruling stayed with banning BTC, instead of regulating it, there should still be quite a lot of adopters in India nonetheless. And we could see existing crypto businesses move overseas, as did other exchanges in China.

[St4yInTh3D4rk]

I don't see any negative news about crypto currencies in India but RBI still have the restrictions for withdrawals and deposits on exchanges,for their statement they suggested to create new law for crypro currency regulation then why we need to consider this as ban they might implement taxation system for it right?

[1Referee]

Even if the ruling stayed with banning BTC, instead of regulating it, there should still be quite a lot of adopters in India nonetheless. And we could see existing crypto businesses move overseas, as did other exchanges in China.

I wouldn't mind seeing them maintain their hostile stance towards Bitcoin and crypto in general. I am strongly of believe that it will motivate people more than is the case already to participate in their own local economies, and isn't that what people here would love to see? It's about time for people to not blindly swallow every law that's being thrown at them by their government.

I respect the law as long as it respects me, and will do everything I can to work around the laws that do not respect me. More people need to follow that route, and I'm glad that I started to notice that it's picking up in more countries, that's the power of Bitcoin. I know it will be a slow ride, but at least the first step is set.

[Theb]

I don't see any negative news about crypto currencies in India but RBI still have the restrictions for withdrawals and deposits on exchanges,for their statement they suggested to create new law for crypro currency regulation then why we need to consider this as ban they might implement taxation system for it right?

It's too late now the Indian Government Panel they were talking about already submitted their recommendation deeming cryptocurrency transactions in their country are illegal, what surprises me is at first I really thought this was an independent panel with no help from other departments or committees but when I read the article they were basing their decision based on what RBI have already decided to do which is really bad way of showing that they didn't even tried enough to alter anything from the original decision.

[gentlemand]

The Indian government has proven to be consistently protectionist, crude, abusive and short sighted when it comes to monetary policy. I can't see that changing. If crypto ever got proper traction there they'd do their best to squash it flat.

[timerland]

I don't see any signs of them uplifting the ban on banks dealing with cryptocurrency related businesses, yet.

suggesting a new legal framework for cryptocurrencies.

While it is not yet clear whether the report talks about crypto legalization or Ban, CNBC TV18 reported on Friday quoting an anonymous source,

All there are within this is a proposition. There is absolutely nothing that would guarantee that the report would be taken into account when the government actually makes a decision towards whether or not bitcoin will be legalized, and regulated.

The fact that they initially put the ban in the first place, without any research will probably lead to them trying to cover up their mistakes by enforcing a full on ban. Even though we all know that regulating crypto is the best long term decision for the Indian government to make, it is probably one that they won't take in the near future despite this report, and common sense.

[MainIbem]

However, this is all speculation and no one is clear yet on the report. However, looking at the current government, I don't see much hope for cryptos in India. What do you think?

It is a matter of time and the Government will know that it has trampled on the rights of the citizens. India is a democracy which promised to provide equal opportunities to all its citizens yet the Government is not allowing cryptocurrency enthusiasts a free space.

[audaciousbeing]

I haven't seen any report of any technical committee set up to look at crypto currency as a whole without suggesting the same thing. The reason is simple, because its still an untapped area which the so called experts have not seen before so in other not to be on the sideline in terms of technical developments, they just suggest regulation but the real issue is how they intend to go about it which I am sure won't augur well for most crypto enthusiasts as the first thing is control that they would focus attention on rather than penetration.

[gullu]

Guys , so finally whats the current status? Did the government declared its illegal? last week also i exchanged some bitcoins to INR via
WazirX. Just scared. I dont want to involve in any case. Please post any update regarding this.

[marcbitcoins]

It is not over until its over thefore don't lose your hope. The good thing is that the government of India spent time to review if crypto currency is a threat or a support to the their economy that clearly it need a deep review as the future of their nation is relied on their decision. There review is better than other nations that directly banned Crypto without consideration.