The Crypto Ban is not a new term for Indian crypto audience. Now India's central government is considering different aspects before banning cryptocurrencies in the country.
The news to ban cryptocurrency trading is still under discussion, but they're still not sure if it will be a full-on prohibition or just some sort of regulation on them. The decision comes as India deals with three big issues: whether or not to impose a total ban; if so then how authorities should regulate them; and finally what kinds of activities should be permitted (and which should be discouraged).
The Indian Parliament is in the midst of deliberating on a bill to regulate digital currency. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was introduced during their Budget Session this year but for undisclosed reasons has not been taken up yet.
A fresh panel may be called upon when it's time for them to reconvene after summer break, as there are many provisions that have remained unresolved or inadequately addressed thus far which will need further discourse with experts before they can become law.
After petitioning from cryptocurrency exchanges in India, the Supreme Court struck down an RBI measure to prohibit regulated entities from dealing with them. The recent informal request by the Reserve Bank of India (RBI) has affected some crypto businesses and resulted in a clarification that licensees can now do business with cryptocurrencies such as Bitcoin or Ethereum.
One example is WazirX whose operations have been disrupted after lenders severed ties following this statement issued by RBI earlier this week which was not clarified for weeks until it turned out that they meant only licensed companies who were barred before could no longer offer services to those without licenses.
Future of Crypto market in India
The future of crypto regulation in India is uncertain, but regardless, exchanges are looking to make their presence felt. Kraken and Bitfinex have started talking with Indian regulators as they consider the appropriate way into this market while Kucoin still has not decided whether it will set up its own business or acquire one from an existing firm.
In 2019, Binance set a precedent for the acquisition of crypto exchanges in India and acquired WazirX. However, recent difficulties have come up with this decision as lenders are having issues with USDT withdrawals while spiking volumes from demand for Dogecoin threaten to crash their servers due to lack of infrastructure upgrades.
Furthermore, the Enforcement Directorate is investigating WazirX's alleged facilitation of money laundering which casts doubts on how much longer they can operate before being shut down by regulators or until an agreement is met between them and US officials regarding compliance measures.
What do you feel about this topic? Will Indian government lift the ban on crypto or continues to enforce strict regulation? Share your thoughts in comment section below