After a total ban on cryptocurrencies, India may now decide to draft a regulation for cryptocurrency operations in the country. Indian cryptocurrency companies took the RBI (Reserve Bank of India) to the supreme court of the country for banning cryptocurrencies such as bitcoin and prohibiting banks to deal with any crypto related activities.
According to sources, Indian Officials lead by Mr. Subhash Chandra Garg are making efforts to prepare the draft report on cryptocurrencies and the use of a distributed ledger system in the financial sector of the country. The committee known as the inter-ministerial committee will hold a meeting very soon to discuss the draft report being prepared by the officials. There are two meetings being set up: one in December this year and the other in January next year for the discussion. The head of the panel, Mr. Subhash Chandra previously said that the regulations will most probably be published in March 2019. For now, cryptocurrencies related operations still remain illegal in the country.
Last month, the co-founder of one of the largest cryptocurrency exchanges in India was arrested by the Bangalore police for operating a cryptocurrency ATM without the permission of the officials. Zebpay, the largest exchange was shut down due to regulatory pressure earlier this year.
India is a highly populated nation where new technologies are adopted very quickly. Last year, India showed one of the highest graphs in terms of cryptocurrency trading. More and more people in the country were moving toward adopting digital ledger technology. The price of bitcoin and other cryptocurrencies were generally higher on Indian Exchange than the rest of the world as the demand was increasing rapidly. Due to the ban, Indian Exchanges were forced to shut down which surely affected the price of all major cryptocurrencies and the market cap also suffered a lot. If the country publishes the regulation soon a massive increase in both the volume and price of major cryptocurrencies is foreseen.