Instead of banning, cryptocurrency becomes commodity in India

August 7, 2018

After a month of certainty, according to Quartz, India will study and even consider cryptocurrency as commodity instead of planning to ban it as informed before.

The India Finance Ministry also shared with Quartz the concern of government about regulating cryptocurrency and identifying the origin of “these assets”  to the country. By allowing them as commodities, it may help the regulators better control the tradings.

Cryptocurrency is not illegal in India, however, the governors still pay a careful attention on virtual currency in order to limit the possibility of cryptocurrency usage to do money laundering and outlawed financing activities.

Former Reserve Bank of India (RBI) deputy governor R Gandhi said that if India treat cryptocurrency as commodity, it would be easier to manage and also very clear to communicate nationwide that crypto, literally, is not real currency like fiat.

Earlier this May, RBI informed that they no longer support and provide any services to any individual or company that use cryptocurrency, regardless the new that this bank is planning to have their own cryptocurrency in very soon. Also in this year, The Indian Finance Ministry raised his doubt on Bitcoin and other cryptocurrency since he indicate there are still risks and danger for crypto bubbles or some types of Ponzi schemes which can cause serious damage to investors.

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