Indian authorities are unlikely to implement a comprehensive cryptocurrency ban, instead favoring to treat them as commodities, a report citing a government official has alleged.
According to CCN, Quartz is reporting that India is unlikely to enforce an absolute ban on cryptocurrencies despite the newly-enforced cryptocurrency decree that outlaw’s banks from providing services to the sector.
Contrary to what has been reported by local media, the official has revealed that the notion of an absolute ban on cryptocurrencies hasn’t ben considered. “I don’t think anyone is really thinking of banning it (cryptocurrencies) altogether,” the senior government official with knowledge of the panel’s discussions told Quartz.
The panel is more concerned about implementing cryptocurrency regulation to monitor the money trail.
Comparing crypto trading to traditional trading markets, the official said:
“Trade is not a criminal offence. Most of us trade in various asset classes in the stock market. So how is this [cryptocurrency trading] any different? What has to be in place is a mechanism to be sure that the money used is not illegal money, and to track its source is the most important thing.”
The head of the same government panel and secretary of the department of economic affairs revealed last month that progress has been made in drafting a regulatory framework and is currently in an advanced stage with guidelines expected to be published in July.