The Indian government is reportedly analyzing options to ban or regulate cryptocurrencies in the country. Bloomberg Quint reports indicate that the government is in talks with financial regulators and industry stakeholders.
They are examining the provisions of an earlier proposal that effectively called for a blanket prohibition of crypto. Several reports stoked fears of a possible crypto ban back in February. However, that has so far failed to materialize.
Instead, the authorities are considering a more nuanced approach to cryptocurrency regulations. But the blanker prohibition is out of the question. The current discussions, however, are going over the clauses in the previous crypto ban bill.
They are trying to determine whether to follow through or seek an alternative approach. The publication says that these discussions are proceeding along three fronts. The first two issues are reportedly around crypto regulation.
They think whether crypto can be regulated or if the government should wield the ban hammer. Finally, the third issue concerns the agenda. Here it is reportedly ascertaining the types of crypto activities that government could permit.
Reserve Bank of India
As per previous reports reserve Bank of India continues to maintain its anti-crypto stance. The RBI also previously stated that it had communicated its reservation to the federal government. However, RBI clarified in May that commercial banks do not come under the Central Bank’s orders.
Indian Supreme Court
Indian Supreme court overturned the bill in March 2020. However, the amended crypto regulatory bill is unlikely to be introduced during the upcoming Parliament monsoon session in July.