Head finance minister of the Indian government, Arun Jaitley, has recently stated his disproval of cryptocurrencies in general. At a conference, Mr Jaitley stated how many Cryptocurrencies were being used for illicit purposes and that the official position of the Indian Government towards this was a zero-tolerance approach.
Currently, India has no laws regulating cryptocurrencies which is similar to many, if not most, other countries worldwide. According to his statement, a governing committee has been formed to discuss potential regulations that may need to be implemented in the future.
Arun Jaitley spoke of how the official position of the Indian government is that they do not recognize any cryptocurrency as legal tender. The politician also voiced his total disapproval towards anyone using cryptocurrencies as a way of funding illicit endeavours. He has been quoted saying:
“The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system.”
Overall this hard-line stance may be the onset of a troubling reality for investors in India. Government interference with cryptocurrencies in the region could prevent any future development in the industry. Over-regulation may lead to stagnation of the crypto market in the area and possibly even death of the Indian crypto-market. This would be bad news for investors as a whole, limiting market opportunities, but also for the Indian government who stand to lose potentially millions they could have ‘raked in’ by supporting a free and open market.
Yet no final decisions have been made and this must be kept in mind by all crypto-heads and Investors alike. It is likely a waiting game is at play, with many of us simply having to wait for the official laws to be put in place by a governing body. Only then can safe and knowledgeable choices be made in regards to specific investments.