The Indian authorities have struggled for years to understand the digital currency phenomenon. This inability to fully comprehend the subject as well as putting it under control has led to a state of semi-denial. The officials keep repeating that it’s illegal, at the same time, they keep trying to tax crypto activities. Does it make sense if when someone who was charged previously with proposing regulations now says that India cannot regulate bitcoin?
The Indian government has criticized cryptocurrencies for quite a while now, yet they have not banned it. Now a top ex-finance ministry official says that bitcoin won’t be banned anyway in the Asian country.
Shaktikanta Das who served as the secretary for economic affairs and also headed the first panel set up of the government in 2017 with the goal of understanding and recommending regulations, is confident that regulation of the virtual currency would not be an easy task.
The hostility of the governmental institutions towards cryptocurrencies is not a secret in India. Numerous cautions were issued against the use of the digital currency, with many officials declaring that they are illegal. The fact remains that cryptos such as bitcoin, have neither been banned and nor regulated in the country.
In February, the media reported that roles played by the various regulators had been determined, but there is no comprehensive regulatory framework yet. The Finance Ministry set up two committees, which attempted to understand cryptocurrencies as well as the commended regulations. The first has advised in contradiction to allowing the use of the digital coins in the country, while the current one is still pondering over the different options available on the table.
Das who has been heading the panel that was formed last year in April 2017 thinks regulation of the cryptocurrencies would indeed be a hard task. He stated that regardless of the provisions, Indians can still be making transactions from the comfort of their houses, emphasizing that there is no way the authorities can enter each home to check the type of transactions is going on there.
In recognition of this challenge, the former Finance Ministry official addressed Indian authorities, suggesting that the country cannot regulate the digital coin.