In contrast to its well-documented stance to outrightly ban cryptocurrency, the Indian government will likely support crypto regulation in its upcoming budget cycle next February.
According to Business News, officials of the Finance Ministry and the Reserve Bank of India (RBI) have teamed up to design the legal framework.
“What should not happen tomorrow is that if I start a personal digital currency, and after good marketing everybody buys it and once it has appreciated, I run away since I am a private player! A Finance Ministry Official said. “Everybody has actually bought that currency by using other assets. Government needs to look at regulation in order to avoid the above.”
In June 2018, an Indian fraudster, Amit Bhardwaj, was nabbed by security officials for his involvement in a crypto Ponzi scheme.
Amit reportedly lured unsuspecting investors by offering them a 10% increase on one bitcoin invested. He also offered to give crypto mining hardware to investors, but none of those promises were fulfilled as he fled the country.
However, the crypto adoption rate in India continued to soar. Around 15 million natives are said to own crypto assets.
The Finance Ministry proposed a draft bill to ban cryptocurrencies in 2019, but the move was quietly tossed away after lengthy deliberations.
The sentiments surrounding the topic have since changed as the government is now leaning towards introducing crypto regulation as against imposing an outright ban on the industry.