- Indian governments review vital areas of legislation that might ban digital coins in the nation.
- Vital considerations include whether the country should ban cryptocurrencies completely or find better regulation ways.
- Indian central bank banned digital coins back in 2018. However, the Supreme Court struck down the move.
The Indian government collaborates with stakeholders and regulators to address three crypto elements. Firstly, the authorities consider whether to enforce a total crypto ban in the country or not. If they go past that, the next thing is how the regulators will control the crypto undertakings. Lastly, the government will consider the types of crypto activities to be allowed and the ones to be discouraged.
Keep in mind that the Crypto Regulation Bill 2021 came up during an Indian Parliament session on Budget in spring. However, due to unknown reasons, the administration took no action. As the Indian government seems slow on the matter, it is unlikely to solve the situation in the next Monsoon Parliament session. Earlier on, the regulators considered creating a new team of professionals to overlook crypto regulations, as it did in 2017.
RBI’s Prohibition Attempts
In 2018, RBI (Reserve Bank of India) banned various regulated firms from indulging in crypto-associated businesses and clients. However, after multiple petitions from crypto exchanges in the nation, the Supreme Court withdrew the move in 2020 March.
Recently, RBI delivered an informal application with similar intentions, although not an official statement. The bank wants to impose its 2018 actions to prohibit lenders from interacting with cryptocurrencies. The reports impacted operations in some exchange platforms like WazirX. However, RBI clarified the statement later to allow businesses to indulge in crypto undertakings.
Indian Crypto Exchanges
Despite the regulatory uncertainty, international cryptocurrency exchanges still consider entry into the Indian market. Among the platforms initiating talks on the nature of the Indian crypto market include KuCoin, Bitfinex, and Kraken.
At the same time, WazirX has been experiencing some difficulties lately. The exchange struggled with the increase in Dogecoin demand over the past months. Moreover, Enforcement Directorate investigates the broker for money laundering allegations.