Skepticism as News of Secretive India Crypto Bill Breaks

Those who mine, trade or own cryptocurrency in India are currently on the edge of their seats, as rumors keep swirling around a draft regulation called the Banning Cryptocurrencies and Regulation of Official Digital Currency Bill 2019.

Whether the bill will become a law or not remains inconclusive, even after attempts of one of India's premier blockchain lawyers to discover the truth.

April's unveiling of a promising regulatory sandbox for blockchain by the Reserve Bank of India contained the first hints of a crypto ban, with the rules making no mention of crypto in a thoroughly tight-lipped manner.

Following a complete lack of guidance on the claim, Indian blockchain and cryptocurrency lawyer Varun Sethi submitted an official request for information to the RBI. The RBI's regulatory framework for blockchain innovation, as well as its ongoing advice to investors about crypto suggests that it has the authority to make these decisions - making it a logical target for Sethi's information request.

There are some things to consider before assuming that India will ban cryptocurrencies.

For India, crypto is an opportunity, not a threatNot only would favorable cryptocurrency regulation help companies like Matic to continue to fund themselves and innovate, it would also provide a good platform for India's digital rupee ambitions.

The legal tangles it would create would waste time and brand India a poor target for blockchain investment.

"Criminal liability for using cryptocurrency on blockchain, while also leaving a loophole for a potential 'digital Rupee' will cause a regulatory blunder. It will create legislative inaccuracies that are more than blurry legal ideas, India will also be branded as an unattractive market. India should learn from other jurisdictions, like EU member states, how to regulate Blockchain and cryptocurrencies in a manner that is not only effective, but legally sound."

News of a delegation's visit to Zug, Switzerland provides further evidence of India's interest in a healthy embrace of blockchain and all that accompanies it.

Zug hosted the group of Indian academics, economists and tech experts who were there to observe how public blockchains have evolved in the "Crypto Valley," and how they could be applied in India.