IT Minister Gives a Green Signal to Cryptocurrency in India

A last week's significant milestone indicates that 

The Indian government may not totally agree with the central bank's unnecessarily hostile stance toward cryptocurrencies. 

On January 19, an Indian government official Rajeev Chandrasekhar spoke about cryptocurrency at an event in Bengaluru. Rajeev asserted that “cryptocurrencies are not illegal in India if legal procedures are followed.” 

Rajeev has served the country for a long time and has made significant contributions to its development. He is currently the Minister of State for Electronics and Information Technology as well as the Minister of State for Skill Development and Entrepreneurship in India. He is also a member of the Rajya Sabha, India's upper house of parliament.

The comments of the IT Minister are significant since the Indian government will present the annual budget for the upcoming fiscal year on February 1.

Local crypto exchanges and investors, who have been subjected to an extremely harsh regulatory environment, have requested and are anticipating some relief in the budget proposals. As per reports, after discussions in parliament, the Budget 2023-24 goes into effect on April 1.

RBI's Harsh Stance on Crypto

In recent months, RBI Governor Shaktikanta Das has defined cryptocurrencies as having no fundamental value. The RBI Governor also argued that cryptocurrencies are similar to gambling and that they could lead to the dollarization of the economy and possibly a global financial crisis.

But a recent study by Nasscom reveals that India's talent pool is driving the worldwide Web3 push and accounts for at least 11% of the workforce. It also highlights the fact that, because of the challenging regulatory environment, more than 60% of Indian Web3 startups are registered outside of the nation. As per available data, at least 7% of Indians own or have performed crypto transactions.

Experts believe that this will force the Indian government to establish a legal framework to oversee cryptocurrencies in the country.

India to Establish a Crypto Framework under its G20 Presidency

India has recently received the presidency of the G20 Nations. After the presidency, the country aims to make use of this chance to establish a legal framework for cryptocurrencies.

In December 2022, India's federal economic affairs secretary Ajay Seth stated that the G20 countries will soon evaluate the significance of cryptocurrencies. This indicates that the Indian crypto community might witness a regulatory legal framework for crypto assets. 

What are your thoughts on Rajeev Chandrasekhar's comments on cryptocurrencies? Do you think India can establish a legal framework for cryptocurrency during its G20 presidency? Please share your valuable thoughts in the comments section below.

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