With the market facing a crisis, it is more than obvious that regulators are paying more attention to crypto-currencies, because in a downturn, they can pose greater risks to not only investors, but also to the economy. This is why some have tried to regulate them or restrict their use in some way.
Among the different countries that have started to pay more attention to crypto-currencies, we cannot ignore India, which has been one of the most prominent nations in recent months, specifically in the area of regulation. This country has indicated on different occasions that it wants to regulate crypto-currencies, but one of the concerns is that these regulations could actually be bans.
And this is not the first time India has addressed the issue of crypto-currencies, nor is it the first time it has attempted to ban them. A few years ago, an executive order was issued to ban crypto-currency activities, which was later withdrawn, but it set an important precedent for understanding how the country views crypto-currencies.
Moreover, with the growth of crypto-currency development projects by central banks, India could not be left out either. Therefore, there has been a lot of talk about the possibility of developing such a crypto-currency, and if this happens, decentralized crypto-currencies could face some problems.
And while we’ve heard a lot of speculation in recent months about what India will do with crypto-currencies, we probably already have that information, as the country’s finance minister has made some important statements.
India’s finance minister to get into regulation
Recently, Indian Finance Minister Nirmala Sitharaman made a statement in which she revealed the next plan that India intends to develop. It is expected that during the upcoming G20 presidency, which will be held from December this year to November 30 next year, the first regulations on crypto-currencies will be introduced.
It should be noted that the minister has in the past called for some global collaboration, with the aim of deciding what to do with crypto-currencies. On this issue, the minister has remained very cautious, as the adoption of crypto-currencies, as El Salvador has done, is quite risky, almost at the same level of risk as banning them outright, as China did last year.
And while India has not yet taken the final step towards a ban, it is something that is bound to happen at some point. India has a fairly clear approach against crypto-currencies, as one of the reasons it has deemed most important for regulation is the apparent risks this asset class creates to financial stability.
The fact is that the future is somewhat uncertain. While it seems that some in the government are quite clear that crypto-currencies are risky, some reporters were interviewed on October 15 and they say that crypto-currencies, while they may be dangerous to the government, could actually be a part of the country’s economic system, the fact is that it’s not clear how that will happen.
Is global regulation of crypto-currencies on the way?
There has been a lot of talk about the possibility of global regulation of crypto-currencies, but there hasn’t been much progress on this issue yet. The truth is that India can’t act alone, even if it wanted to. That’s why the G20 presence is so important. It is a global forum that deals with economic issues.
The G20 meetings will decide what regulatory plan India and other countries can follow. It is not yet known what the approach of this forum will be, but it is known that it will not be too open to crypto-currencies. It could be a somewhat restrictive approach, but with some permissions that will provide users with different opportunities to use crypto-currencies, but with more oversight.
However, it should be noted that regulation does not always mean prohibition, which is why the presence of cryptocurrencies will continue in the global economy, but with different approaches depending on the interests and economic conditions of the country.