Subhash Chandra Garg, former Indian Finance Secretary, has supported the regulation of cryptocurrency in India.
During a webinar, Garg expressed support for “regulated development and trading of crypto assets as commodities.”
He added: “Private cryptocurrencies have no justification to exist … I stand by the recommendation in that cryptocurrencies should be outlawed.”
However, he said that crypto assets as commodities should be allowed.
The law firm Khaitan & Co. organised the webinar in collaboration with Blockon and Crebaco Global.
Garg’s History with Crypto in India
Garg headed an inter-ministerial committee (IMC) tasked with examining crypto future in India with https://xn--ln-pengar-52a.se/.
The committee issued a draft bill entitled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019”.
The bill met a strong backlash from the Indian crypto community who saw it as deeply flawed.
Shortly after the bill publishing in July 2019, Garg was shifted to the Power Ministry. But he applied for voluntary retirement concurrently.
In response, the Indian crypto community launched a social media campaign called “India Wants Crypto”, Bitcoin Insider reported.
The campaign calls for positive crypto regulations.
The Reserve Bank of India (RBI) prohibited in April 2018 regulated financial institutions from providing services to crypto businesses.
However, the Supreme Court abolished the ban in March 2020, and since then the Indian crypto industry has been thriving.
Boom Amid Lockdown
Last week, a major Indian corporation, Tata Consultancy Services (TCS), launched cryptocurrency trading solutions for banks, Bitcoin.com reported.
Earlier this month, the Hindu, Indian newspaper, revealed that trading volumes have surged 400% in recent months amid national lockdown.
Several new players and many more retail investors have entered the Indian cryptocurrency market in the last four months, the newspaper said.
However, the Hindu warned that obstacles remain, not the least ambiguous regulations and possible ban.