Indian authorities find themselves at a crossroads lately, as while it is clear that the majority of the Indian populace desires nothing more than the complete legalization of cryptocurrencies in the country, the government remains hesitant. As such, the authorities are currently considering various options regarding regulations for cryptocurrencies in India. The government has yet to decide whether crypto should be regulated more strictly in the country or if the new asset class should be banned in its entirety.
To this end, talks have been initiated with various financial and institutional regulators as well as stakeholders for the purposes of examining numerous provisions pertaining to a proposal that was previously brought forth. This proposal essentially outlined the possibility of a blanket prohibition as far as cryptocurrency usage in India went.
Crypto ban still possible?
It had been during this past February that numerous reports had emerged which dictated that a ban on everything related to cryptocurrencies, including cryptocurrencies themselves, may effectively be implemented outright. However, this might not end up being the case, as it now appears as if the government is actively considering adopting a much more nuanced approach for crypto regulations. As of now, it seems as if complete prohibitions are no longer being considered.
To that end, discussions are currently underway in order to deduce whether an alternative route is needed or if the clauses present in the previous bill relating to the ban need to be followed through. Essentially, these considerations are being conducted along three main fronts, with the first two being centred around the idea that cryptocurrencies may need to be regulated more strictly or if a total ban should be administered. The 3rd issue is based on the different types of activities and operations being conducted utilizing cryptocurrencies. It needs to be decided whether these activities fall under any kind of regulatory system or paradigm within the country, and the sooner the government ascertains this, the better.
Central bank overruled
It had been during last month when the nation’s Reserve Bank (RBI) had provided clarity over the fact that India’s commercial banks were no longer under any kind of compulsion to adhere to the orders given by the central bank as far as refusing services relating to cryptocurrency exchanges was concerned.
This had been because the nation’s Supreme Court had decided last year that the RBI’s mandate shall be overturned, with the mandate itself previously stopping the banks from providing services to the crypto exchanges present in India.