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India may classify cryptocurrencies as commodities and avoid ban

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India may classify cryptocurrencies as commodities and avoid ban

A good news for cryptocurrency traders in India, if we believe the news of a government official India now avoid the ban on cryptocurrency trading and treat them as commodities.

A senior official related to the ongoing regulatory discussion on cryptocurrency ban in India gave this information and the situation is like a blanket ban on the cryptocurrencies.

Recently Reserve Bank of India which is also the apex bank of India mandated the banks and other financial institutions under its regulation to stop providing services to the cryptocurrency related transactions, especially to cryptocurrency exchanges.

But, there is also one point to ponder that Reserve bank of India had not done any dedicated research before banning the cryptocurrencies related transaction and services which we cannot expect from an institution like Reserve bank of India.

In April, RBI had given a period of 3 months to traders and cryptocurrency exchanges to wrap up their businesses, but many exchanges moved to the Supreme Court of India which is apex court in the country to put a stay on the ban, but they came helplessly from the Supreme Court.

But users or say cryptocurrency traders had to find another way to transact that is peer to peer transfer of currencies means now traders trade in currencies only and not in fiat currency or from bank accounts.

Seeing the scenario of the market that traders are interested in cryptocurrencies even after the ban government may looking some other way to tackle this. As the government of India already declared that the government cannot give the legal tender to cryptocurrencies and even compared cryptocurrencies market with Ponzi schemes. There was also a news that Venezuela is ready to give oil on a discounted rate in exchange of ‘’PETRO’’ but the government of India denied this offer because of its strict stand against cryptocurrencies.

Government is too much concerned with terror financing and believe cryptocurrencies will help those organizations and also boost illegal financial transactions.

Maybe after watching other countries like Korea, Japan etc who regulated the market effectively Indian government is also thinking to do same but step by step and giving commodity status to cryptocurrencies may be the first step, now we have to see how this blanket ban will help the cryptocurrency market in India

 

Neeraj Pandey is a crypto enthusiast who writes ardently about happenings in the crypto world since 2016 and delivers his knowledge of Blockchain, initial coin offerings (ICOs)  and breakdowns of the crypto world to its users relentlessly.

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