The Indian government seems to have changed its stance towards cryptos. Sources indicate that authorities in India are reviewing modalities for regulating crypto rather than banning it entirely in the country.
According to Bloomberg Quint, reports emerged that the government is engaging in advanced talks with financial regulators and other crypto industry’s stakeholders to review an earlier provision that proposed to effectively call for blanket prohibition of crypto in the Asian country.
In February 2021, reports from India raised fears of a possible accelerated crypto ban that has so far not been implemented. Interestingly, the speculative narrative out of the country is that the authorities are now considering a more hospitable approach to crypto regulation blemishing the earlier proposition of a blanket ban.
An anonymous source quoted by Bloomberg Quint said that the current discussions are allegedly focusing on the clauses in the previous crypto ban bill to determine whether to amend or seek an alternative approach.
The publication further revealed that these discussions are proceeding along three fronts. The first two issues are revolving around whether crypto can be regulated or rather the government should wield the “ban hammer”.
The last issue on the agenda supposedly focuses on types of crypto activities that could be authorized under the standardized cryptocurrency regulatory paradigm in India.
While federal governments worldwide continue to take a nuanced approach towards cryptocurrency, including Tanzania and El Salvador, the Reserve Bank of India (RBI) has maintained its anti-crypto stance. The RBI has previously said that it has communicated its reservations about cryptocurrency to the federal government of India, hoping for a total ban of crypto operations in the nation.
In May 2021, the RBI allegedly insisted that commercial banks were not under orders from the central bank to refuse to service crypto exchanges. Interestingly, the Supreme Court of India in March 2021 had overturned a previous RBI mandate prohibiting banks from servicing exchanges in the country.
In anticipation of the deliberate pace of the ongoing discussions, the quoted source hinted that the amended crypto bill would not likely be tabled in the upcoming monsoon session of parliament in July.
In the Meantime, already three major cryptocurrency exchanges, including Kraken, Bitfinex, and Kucoin are supposedly mulling an expansion ahead of the ongoing discussions; aiming to serve India’s estimated 15 million crypto investors.