Start-ups welcome lifting of cryptocurrency ban

Start-ups working in the cryptocurrency space in India have welcomed the Supreme Court’s decision to quash the Reserve Bank of India’s April 2018 order banning financial institutions from trading in the virtual currency.

However, stakeholders will adopt a wait-and-watch policy, especially since finance minister Nirmala Sitharaman has hinted at tabling a Bill titled Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019 in parliament soon after the interministerial committee had recommended banning all kinds of cryptocurrencies in India.

Experts opine that Centre should introduce a tax clause in the Bill for cryptocurrency trade and ensure the security of assets in the crypto exchanges.