An Indian minister has reportedly revealed that a state government is working to protect businesses operating without a regulatory framework in India. They include cryptocurrency exchanges and crypto-accepting merchants. The move follows the arrests of the founders of a crypto exchange after they tried to set up an ATM-like kiosk at a local mall.
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Innovation Authority
“Technologies are fast changing and our policies are only trying to catch up,” he told the news outlet on Monday. “Instead of banning a people-friendly business on the grounds that the regulations do not allow it, the Innovation Authority would intervene to come up with a quick policy framework.” The minister elaborated:
For example, bitcoins are traded in restaurants in Bengaluru, and we will need to interact with the government and get a regulatory clarity instead of banning those technologies for which regulations are not yet in place.
Confusion Over Unocoin’s Kiosk
Cementing his point about the need for innovation-friendly policies, Kharge referred to the recent arrests of Unocoin founders, the publication conveyed.
According to the exchange, the police took the stance of “The ATM kiosk installed by Unocoin at Kemp Fort Mall has not taken any permission from the state government and is dealing in cryptoasset outside the remit of the law.” The company argued:
Since this is a private kiosk, there isn’t any need for procuring any license or an approval of any sort from authorities. Kiosk machines of Unocoin do not fit RBI’s definition of ATM which connects to the banking network.
Police Questioned Legality of Cryptocurrency
Regarding the kiosk, Vishwanath told news.Bitcoin.com that so far the police “have understood” that it is not an ATM. However, he noted:
Because they have started a legal proceeding, it will take its own sweet time and course before the issue gets cleared.
Prior to his arrest, the Economic Times quoted Vishwanath explaining that cryptocurrency is not illegal in India. He emphasized that the statement by the country’s finance minister “was clear: cryptocurrencies are not legal tender in India. He did not say ‘illegal tender.’ There’s a huge difference.”
The CEO told news.Bitcoin.com:
Their [police’s] main concern is around the legality of crypto assets itself, and it is difficult to make the police understand the regulatory stance of our country as the topic is quite new to them.
What do you think of this Indian state government trying to help the crypto industry? Let us know in the comments section below.
Images courtesy of Shutterstock and Unocoin.
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Source: Bitcoin.com