The recent ‘report‘ on the Indian blockchain ecosystem is increasing concerns over a draft proposal by the govt. to ban ‘cryptocurrencies‘ and regulate digital assets, raising previous criticism cited by the industry stake-holders and entrepreneurs.
As per the yet-to-be-released report compiled by Blockchained India, illegal transactions, evasion of taxes as well as lack of talent are among a number of the other crucial issues plaguing the crypto & the blockchain businesses, mainly due to the absence of regulations.
A government official stated earlier in April that the draft bill of the ‘Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019’ has been already circulated to the relevant departments.
Also last week, ‘media reports‘ added that the holding, trading or dealing in crypto assets like Bitcoin [BTC] might entail around 10 years in jail. A ‘Right to information Query‘ filed by blockchain attorney ‘Varun Sethi’, however, stated that the central bank of ‘India‘ [RBI] had not yet issued any such circular and is neither familiar to any such draft bill. “No official announcement has been yet made and such a draft would take time to further formed as a law, particularly if it’s not a policy priority for the new government,” said Anirudh Rastogi, managing partner at law firm named ‘Ikigai’.
The chief executive officer of Mumbaibased cryptocurrency exchange WazirX named ‘Nischal Shetty,’ said that the “Internet and Mobile Association of ‘India‘ is looking forward to debate the laws with the new government but it’s definitely to take some time”.
On the other hand, individuals who have invested within the digital assets have been the foremost to be affected, as they’re unsure of what would be happening in future legally.
Indian VC investments within the blockchain sector summed a paltry $5.3 Mln till date, compared to $2 Bln in blockchain equity deals world-wide, or the $20 Bln raised via the ICOs funding, in line with a report by ‘Incrypt’.
However, to solve the existing issues of tax evasion, the govt. could collaborate with the crypto-currency exchanges to bring forward a more clear transparency, said Akshay Aggarwal, chief executive officer of ‘Blockchained India.’ All legitimate exchanges operating within the country would be ready to collaborate with the govt., he said.
Industry insiders don’t expect the govt. to make any major announcements for the crypto-sector by this year. However, it’s expected that it is going to initiate talks with the industry experts to deal with their concerns. A case on the cryptocurrency-banking ban, that was scheduled for the hearing within the Supreme Court earlier in March, has been for now, delayed to the 2nd week in July.
Just recently, Indian delegation studied public blockchain activity within the Swiss city of Zug and is anticipated to suggest policy amendments aimed towards adopting the safe and a similar framework in the country.