The Indian cryptocurrency ecosystem is currently being evaluated by the country’s government. The Indian government recently announced the formation of a committee to study the use of cryptocurrencies in relation to existing legal and regulatory frameworks.
The inter-ministerial committee responsible for studying and reporting about country’s cryptocurrency ecosystem was created almost a week ago, and they were earlier expected to submit their report on April 20, 2017. However, given the learning curve and complexities involved in understanding cryptocurrencies, the report is expected to get delayed by at least three months.
Indian cryptocurrency businesses, which understand the importance of such a study, believe that a regulatory regime will impart cryptocurrencies with the much-needed legal status. At the same time, they want to ensure that the inter-ministerial committee makes an informed decision, for which they have requested for a consultation with its members in the coming days.
The request for a meeting was put forward by the recently formed Digital Asset and Blockchain Foundation of India — a cryptocurrency industry association. The Digital Asset and Blockchain Foundation of India (DABFI) has all the leading players in Indian cryptocurrency market including Coinsecure, SearchTrade, Unocoin and ZebPay. The DABFI’s recent statement reads,
“We have seen that in countries where governments have come out with a self-regulation policy, created an environment for the bitcoin/ blockchain technology to grow, those countries have become the epicenter for innovation. Investments have started pouring in and next generation, new edge technology developments, user-friendly products and a new breed of entrepreneurs have developed.
We request the committee to give us an opportunity to meet them and showcase the benefits of this technology for our country. Financial inclusion, cheaper cross-border remittance, full trace and track on the movement of value on the blockchain network, and the potential for India to become a financial hub are key benefits that can be derived using virtual currencies.”
In multiple instances, members of parliament have expressed their concerns about the rising use of Bitcoin and its implications on money laundering and tax evasion. One of them even went far enough to call Bitcoin a giant “Ponzi Scheme”.
The consultation of Bitcoin businesses with the committee will ensure that the decision makers weigh both sides of the argument and make a well-informed decision after considering both advantages and disadvantages of cryptocurrencies and their underlying technology.
Ref: Econotimes | Image: NewsBTC