The situation for cryptos continues to be tense in India as there is no certainty about their future. Now, the Indian Ministry of Finance has filed a counter affidavit now to petition for “concerned citizens” will be important in the definition of the future of cryptos in India.
Last year, when cryptos were starting to get popular in India, the Supreme Court lawyer Dwaipayan Bhowmick filed a petition to request that the government would create a crypto framework. A group was then created on November 2, 2017, and this group would decide whether the best for India would be to ban cryptos or to regulate them instead.
The interdisciplinary committee that was created at the time was set by the Secretary of Economic Affairs, Subhash Chandra Garg. It included members from the ministries of Finances, Information, the Reserve Bank of India (RBI) and the State Bank of India, among some other important organizations.
Now, it was reported by Crypto Kanoon, described as a “quasi-legal organization” by BTCmanager, that the Supreme Court as asked for an update on the progress made so far and the time frame of the government for the proposal.
Therefore, the government eventually filed the affidavit this week. It was filed by the Indian Ministry of Finance and it is supposed to enlight the Supreme Court on whether the government will ban cryptos or not.
Unfortunately, the document was described as of having a “sensitive nature”, so no information was disclosed at the time about the future of cryptos and the enveloped was fully sealed.
The Uncertain Future of Cryptos
Some information that is being discussed at the moment is that the government may have said that it does not recognize the existence of any kind of virtual currency at all but that anyone could trade in cryptos if they wanted to, however, they should be advised that they would not be protected.
The situation is quite tense as nobody is actually sure of what the government will decide. More than one committee was created to determine what will happen and the only order that was enacted so far was the so-called “crypto ban” of 2018, which caused banks to be banned from offering their services to crypto exchanges.
A light at the end of the tunnel might that India, along with the other nations from the G20 committee, has pledged to regulate cryptos as it was mandated by the Financial Action Task Force (FATF) when the group reunited.
However, since the crypto ban, traders all over India are afraid that the country might end up deciding to exclude cryptos from the system, which put them into the illegality, something that China has already done.
What will happen? Nobody actually knows, so we will definitely have to wait and see the decision of the Indian government.