Revision of the cryptocurrency Ban in India

In March, the Indian government was preparing for a complete cryptocurrencies’ ban in the country. Any operations with digital assets, such as their production, trading and holding should have been punished by the criminal law. If the plan was fulfilled, India would have become the first country, which prohibits not only trading, but even the storage of crypto assets.

However, in early May, the Internet association IndiaTech called on the government to revise the law and keep cryptocurrencies in the form of digital assets. The company offers to equate cryptocurrencies to stocks, bonds and precious metals. Organisation’s white paper contains recommendations for improving the legal framework for digital assets.

The document proposes to create a separate procedure for issuing licenses to cryptocurrency exchanges and follow KYC/AML, the principles of collecting and protecting users’ personal data and combating fraud and money laundering. Additionally, the document recommends to amend the Indian Tax Code regarding digital assets.

In general, IndiaTech proposes to make all cryptocurrency transactions as transparent as possible, but still approach the matter more liberally. The best solution, in their opinion, would be to provide the state with enhanced regulatory capabilities in terms of cryptocurrency, avoiding a complete ban.