India is finally open to the cryptocurrency market.moratoriums on digital assets introduced back in2018, ceased to operate. Now companies, before making a new decision on the control of the cryptocurrency industry, have the opportunity to open and register with other commercial enterprises.
India is open again for cryptocurrencies
In 2018, financial institutions of various typesReceived an open letter from RBI stating that cryptocurrency services are prohibited by domestic law. The moratorium affected all areas of activity, including the banking sector. Digital assets are no longer officially considered property, which is why it was forbidden to use them as collateral for lending.
Recently, the Indian exchange Unocoin, whichceased operations two years ago, filed a request with the country's central bank with a request to clarify the lifting of the moratorium and give recommendations on working with digital assets. In response, the regulator noted that the restrictions have indeed been lifted, but the cryptocurrency market still does not have any legislative capabilities to function along with other financial sectors.
"Financial institutions that previously receivedprohibition letters may continue to work. In 2018, the situation was completely different. Now India is open to external cryptocurrency markets. We are ready to cooperate with private companies on the creation of digital infrastructure. For this, only the adoption of relevant legislative acts is necessary. ”, - said the response of the central bank of India.
Harish BV representatives noted thatThe official response of the regulator can now be used in the event of the start of litigation against cryptocurrency companies. If the situation is stable, then India can indeed become a country with a warm investment climate in this industry.
Reasons for changing cryptocurrency rules in India
Many Western publications do not exclude thatThe reason for the sharp change in the financial vector of India is the situation with the coronavirus. Despite the fact that the country is not a major exporter of goods, its economy has still been hit hard by the pandemic.
In addition, the country's population is 1.3 billion people. Blockchain solutions could provide banking for every adult citizen.
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