It’s not debatable that cryptos have faced a backlash from government authorities because of their popularity with criminals, and it’s this uncertainty that has led to countries like India attempting to ban them. But what if there was a way to stamp out the bad actors and clean up the industry in a way that only good-intentioned people get to use cryptos?
In a recent White Paper, Ripple requests Indian lawmakers to allow for the implementation of a regulatory framework to govern the crypto industry in the country. Ripple is a popular and global company that runs a vast blockchain-based payment platform.
The Court Is With The People
Notably, the Indian government hasn’t been very charming towards cryptocurrencies. It’s on record that the Reserve Bank of India had moved to prohibit local banks from engaging in business with crypto-related companies, but this apparent censorship was later repealed by the Supreme Court, citing constitutional constraints.
However, despite the court ruling, Indian banks were still reluctant to enter business with crypto companies due to a lack of clear rules to be adhered to.
A Clear Set Of Rules
Ripple’s proposal seeks to eliminate this grey area by introducing a legal framework backed by Indian law. This way, banks, and other institutions can freely do business with crypto companies. On their part, Indian banks moved to demand an official communication from the RBI lifting the sanctions on crypto companies after the court ruling.
However, the future of crypto in India was still not certain after reports circulated that the government was still contemplating another blanket ban on cryptocurrencies in India.
What India Stands To Gain
According to Ripple, legalizing, and regulating the crypto industry in India would serve the country’s best interests. Figures from the World Bank show that India receives upwards of $69 billion remitted by citizens working abroad. An improvement in the remittance infrastructure would cut costs of transfer and boost liquidity. However, for this to happen, the RBI needs to green-light crypto-asset services and cryptocurrencies.
The Indian parliament will be back in session this July, and many hope that the lawmakers will hold a debate on the proposal to come up with a comprehensive policy to manage rather than censor the crypto industry in India.