According to reports, the Indian government is reviewing ways to ban or regulate cryptocurrencies in the country.
According to Bloomberg Quint, there are reports that the government is negotiating with financial regulators and industry stakeholders to review the terms of the early proposal, which actually calls for a total ban on cryptocurrencies in India.
As early as February, several reports from India raised concerns about a possible encryption ban, but the ban has not been realized so far. On the contrary, the new argument emerging in the country is that the authorities are considering a more nuanced approach to cryptocurrency supervision and there is no possibility of a more comprehensive ban.
Bloomberg Quint quoted an anonymous source as saying that the current discussion is discussing the provisions of the previous encryption ban bill to determine whether to continue enforcement or seek alternative methods.
According to the publication, these discussions are going on in three areas. According to reports, the first two questions are about whether cryptocurrencies can be regulated, or whether the government should use a “ban hammer.”
According to reports, the third issue on the agenda is to determine the types of cryptocurrency activities that can be allowed under the standardized cryptocurrency regulatory paradigm in India.
The Reserve Bank of India continues to maintain its anti-crypto stance. The Reserve Bank of India has previously stated that it has communicated its reservations about cryptocurrencies to the federal government.
As early as May, the Reserve Bank of India clarified that commercial banks have not been ordered by the central bank to refuse to provide services to cryptocurrency exchanges. In fact, the Supreme Court of India in March 2020 overturned the previous RBI’s authorization to prohibit banks from providing services to exchanges in the country.
In view of the cautious pace of ongoing discussions, the source quoted also added that during the upcoming parliamentary monsoon meeting that will begin in July, it is unlikely that the revised encryption regulation bill will be introduced.
At the same time, it is reported that the three major cryptocurrency exchanges-Kraken, Bitfinex, and KuCoin-are considering expanding their operations to India to provide services to the country’s estimated 15 million cryptocurrency investors.