The central government in India is now reviewing the key parts of the legislation. This legislation would ban cryptocurrencies in this country. Along with the regulators and other stakeholders, the government is now addressing all key issues. The first key issue is whether or not to impose a complete prohibition on crypto in India. If they decide to go against this, the upcoming consideration will be how the authorities would regulate them. At the same time, they will also consider what kind of activities should get permission and what must be discouraged.
The Cryptocurrency and Regulations of Official Digital Currency Bill 2021 got introduced during the Indian Parliament’s Budget Session.
For some undisclosed reason, no actions have been taken yet. The government is painstakingly combing through this bill clause-by-clause.
This situation is unlikely to get a resolution during the upcoming Monsoon Session of the Parliament. The government came up with earlier considerations, which convened a fresh panel of experts to have a discussion over crypto regulations.
In 2018, RBI barred the regulated entities from dealing along with crypto-related businesses and customers. After the petitioning from crypto exchanges in India, the Supreme Court struck down these measures in the March of 2020.
Although there is not an official ruling, RBI has recently issued a completely informal request with a similar intent to that of 2018. The lenders sever ties with the crypto business. This is reportedly affecting the operation of some of the crypto exchanges like WazirX. But RBI has clarified its statement while allowing the business to operate with crypto companies.
Amid this uncertainty, the global crypto exchanges are considering how to enter the Indian market. Kraken, KuCoin, and Bitfinex have initiated the talks for understanding the Indian market to enter with better points. One exchange has already started with due diligence for an Indian firm. The other two of them are still looking for their options. They are considering whether to set up their subsidiaries in this country or buy a local firm. The oldest crypto exchange in the country is facing some difficulties. The exchange is also struggling to deal with the spike of Dogecoin demand volume in India. Above that, the financial watchdog’s Enforcement Directorate is investigating WazirX for alleged money laundering.