India Doesn't Ban Crypto, Treat Cryptocurrencies As Tokens

India considers crypto as a token (Lucknowfirst)

JAKARTA – India, which is known to be tough on cryptocurrencies, seems to be starting to soften. This can be seen from the opinion of a member of the Indian Monetary Policy Committee, Ashima Goyal, who said that a total crypto ban would be difficult to implement.

Previously, Goyal served on several government committees such as the Prime Minister's Council of Economic Advisors, and the Reserve Bank of India (RBI) technical advisory committee on monetary policy.

When talking about cryptocurrencies, Goyal said that cryptocurrencies should be referred to as tokens because cryptocurrencies are unacceptable and inadequate to be a medium of exchange. Therefore, cryptocurrencies should be banned as legal tender, but still regulated as tokens.

"Only large transactions, from risk-aware investors, are allowed", Goyal said.

In recent discussions with the central board of governors, the RBI urged the government to ban crypto completely but said most bans would not work. The ban will only increase illegal activity.

In addition, RBI also assesses that cryptocurrencies are very vulnerable to fraud and have extreme volatility. They assessed that cryptocurrencies “pose a direct risk to customer protection and anti-money laundering (AML)/combating terrorism financing (CFT)”.

As of now, there are no specific laws regarding crypto in India. Even so, the Indian government is preparing a cryptocurrency law. India's tough stance on crypto has been in the global public spotlight in recent months. However, India's attitude is not as strict as China's, which prohibits trade and expels crypto miners, and even discussions about crypto through social media are also not allowed.