Bitcoin Wild West Confirmed by Indian Parliament!

January 13, 2020

Welcome guys to another episode of
Hinglish Investor! In this episode I have three things that I want to talk about.
Number one is the current regulatory status of cryptocurrencies in India, now
with official words coming out of the Indian Parliament. Number 2 is the
upcoming regulations that we’re expecting to come out of the Parliament.
And number 3 – Crypto versus RBI court case in the Supreme Court, that is coming
up. The first article that I want to talk about in this episode is this one which
indicates very clearly that bitcoin is not banned in India right now. It’s
something that is expected to be discussed in the very near future. And
there was a question that was posed to the finance minister of India whether
cryptocurrencies are currently prohibited in the country, and if so
please could the Minister of Finance provide details about it. The answer came
from the Minister of State that works in the Ministry of Finance and he says that
“No, Sir. Cryptocurrencies are not currently banned in India.” That’s what
the current regulatory status is. Yeah it’s still basically the Wild West when
it comes to crypto in India because there are no regulations at all, so when
it comes to cryptocurrencies in India the current regulations that are already
in existence that may or may not acknowledge cryptocurrencies, still apply
and that’s something that’s very key and that we should remember. For those of
you who don’t remember – the RBI (the Reserve Bank of India) had issued a ban
for regulated banks in India to deal with cryptocurrency related institutions
for buying or selling Bitcoin or for any other purposes that deal with
cryptocurrencies. So what this means is that since last year the RBI has forced
banks to not let you send or receive any money from institutions that will buy or
sell Bitcoin or cryptocurrencies on your behalf. A second thing that I want to
clarify in this video is the timeline when it comes to the new regulation that
we’re expecting to come up. Now that India has taken part in the FATF
discussions that were held at the G20 Summit in Japan this year, I believe that
India must have learned quite a lot around
what other countries are planning to do, or are currently doing; especially Japan,
since the g20 summit was held in Japan and Japan is a country that has been on
the forefront of crypto regulations recently. Especially since the events of
Mt Gox happened that shook the world of cryptocurrencies. If India is getting
to learn from countries like Japan then that will be a very optimistic case and
we can only hope that that is definitely the case. The expert committee that was
formed on cryptocurrencies was supposed to draft a bill or draft regulations or
draft advice to the Parliament when it comes to cryptocurrencies to in turn draft new
regulations. Now this does not necessarily mean that whatever the
expert committee drafts or comes up with necessarily will become a regulation or
a law in the country but it’s something that should be presented to the Ministry
of Finance as a piece of advice that will in turn decide what to propose to
the Parliament for voting. And it’s ultimately the Ministry of Finance that
is responsible for drafting this legislation. So when it comes to the
new crypto regulations that we’re expecting to come out of the country
soon or relatively soon, it might actually take a while and it will
probably not be in the form that we have seen it in – in that leaked document. Most
likely it’s going to be very different from that, and it’s very likely what we
saw was a very rough draft bill which will probably undergo many modifications
before it does become a regulation. So once again this is an optimistic note.
Because in my opinion it probably cannot get worse than what we read in that
leaked document. And the final news that I wanted to discuss in this episode is
the fact that we’re expecting a crypto versus RBI Supreme Court hearing coming
up on this Tuesday on July the 23rd. And that’s basically the exchanges in India
and the people who are exposed to or who are dealing with cryptocurrencies in
India coming together and filing a petition with the Supreme Court, that the
ban on financial institutions, the ban on banks from dealing with crypto-related
institutions should be revised. It’s something that has obviously choke-holded the entire crypto industry in India, and it’s really something that
really needs to be discussed in the Supreme Court.
So we could expect something official to come out of the Supreme Court on July
the 23rd and once that happens be sure to check out this channel, because I
will definitely be talking about that immediately! And around that time we
might expect the expert committee on cryptocurrencies to come out with
something if not that bill that we saw the leak of. Definitely some interesting
times about to come up in India! That’s it for this week. I hope you have
a lovely week and stay tuned for more news coming out of India when it comes
to cryptocurrencies. Have a great week and see you next time!

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