India: Union Government given four weeks by Supreme Court to draft cryptocurrency regulations and policy

Blockchain technology and cryptocurrencies are still in their nascent stage and many countries, including India, are looking to bring in regulations in the decentralized sphere. According to recent developments, the Supreme Court of India gave the Union government an opportunity to make policy decisions about cryptocurrencies and their functions within four weeks, reported Crypto Kanoon.

A tweet from Crypto Kanoon’s Twitter handle read,

“#CryptovsRBI update!
Supreme Court has granted 4 weeks to Indian Government as the final opportunity to bring about a policy (Rules and Regulations) on Crypto currencies!”

On February 25, the apex court ruled that it is giving an opportunity to the Central government to make a policy decision before taking a stance on its own. If the Centre fails to draft a viable policy in four weeks, the Court will take a decision by itself. However, it is highly unlikely as the Union government is already working towards understanding blockchain technology and cryptocurrencies and its implications.

Before the declaration, the Internet and Mobile Association of India had challenged the Reserve Bank Of India’s [RBI] decision to ban any transaction related to cryptocurrencies. The Association called the ban unconstitutional and according to Crypto Kanoon, the Supreme Court pushed the date of hearing to late February.

India’s National Association Software and Services Companies [NASSCOM] recently released a report before a panel explaining the current scenario of India’s blockchain and cryptocurrency space. The vice-president of NASSCOM, Sangeeta Gupta, presented her findings at the NASSCOM Technology and Leadership Forum 2019. The report, titled ‘Blockchain: Hype to Hope,’ detailed the current state of the blockchain market and highlighted the opportunities that the technology could offer the global citizen.

This report stated,

“India needs to act fast & work with key stakeholders to provide regulatory certainty around Blockchain & Cryptocurrencies.”

The report also stated that new, sizable home-grown crypto exchanges suffered due to RBI’s directive to ban crypto-related trading. Debjani Ghosh, the president of NASSCOM, said that investment in the technology space has been the highest over the past five years. However, stats revealed that funds allotted for the blockchain sector have not been utilized to drive growth due to the lack of legal clarity.

The NASSCOM report stated,

“Despite VC investments pouring in blockchain, India had less than 0.2% of global investments due to uncertain policy & regulatory environment.”

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