Key takeaways:
- Paytm might integrate bitcoin payments.
- According to CEO Madhur Deora BTC is a “gray area” in the Indian scenario
- Paytm is preparing for its first public offering (IPO), which is expected to take place in mid-November and might be worth $2.5 billion as per Deora’s comments.
Paytm, India’s largest digital payments business, said on Thursday that it would consider Bitcoin services if the country’s cryptocurrency legal structure was more specific.
Paytm CFO Madhur Deora told Haslinda Amin and Rishaad Salamat in an interview on Bloomberg TV that the legalities around Bitcoin (BTC) in India are still in a “grey area.”
“Bitcoin is still in a regulatory grey area if not a regulatory ban in India. […] At the moment Paytm does not do Bitcoin. If it was ever to become fully legal in the country then clearly there could be offerings we could launch.”
The Reserve Bank of India (RBI) previously barred cryptocurrencies, but the Supreme Court of India overturned the judgement in March 2020. Since then, the manner of factual enactment from either the authorities or the RBI regarding cryptocurrency legislation has been a minor success.
With the court’s decision in the historic RBI case, India’s legal and regulatory atmosphere for cryptocurrencies looks to be facing one final obstacle. The Indian government decided in the fall of 2019 to postpone the submission of a draft bill to parliament on a potential cryptocurrency prohibition until the 2019 winter session.
The law, titled “Banning of Cryptocurrency & Regulation of Official Digital Currencies,” was apparently drafted to not only prohibit the usage of cryptocurrency in India but also to provide the groundwork for the Reserve Bank of India to produce a state-backed “Digital Rupee.”
Despite the fact that the federal government has considered crypto legislation, the RBI has firmly resisted it and is still advocating for a ban. According to Cointelegraph, India’s finance minister, Nirmala Sitharam, stated that while the government is “not against cryptocurrencies,” it should look at how they may benefit the country’s financial technology industry.
Paytm is preparing for its initial public offering, which is expected to take place in mid-November and may be worth $2.5 billion. Deora’s comments come as Paytm prepares for its preliminary public offering, which is expected to take place in mid-November and could be worth $2.5 billion. According to reports, the IPO will become India’s largest-ever capital market debut.
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