India is currently in the middle of reviewing an old legislation according to which all crypto-related businesses are to be regulated and potentially banned.
This Wednesday, Bloomberg Quint reporter that the local official, including government workers and regulators, are inspecting the Cryptocurrency and Regulation of Official Digital Currency Bill, introduced during the last parliamentary session.
Three main crypto-related issues are discussed in the bill:
- The question of whether to impose a full-scale crypto ban;
- The alternative of a ban: a heavily regulated sector;
- Yet another alternative, sub-divided crypto activities into legal and illegal operations.
Reports suggest that that the government is planning to form a new panel to evaluate the digital coin industry, replacing the old panel.
For now, India is yet to go into a full-scale ban mode on most crypto assets, much as Thailand did.
Meanwhile, Indian lenders have turned against the crypto industry, in a hostile move against it, by denying services to all crypto exchanges. The central bank has since then intervened by stating that the local regulators permit banks to take in crypto-using clients.
There is nothing official yet, however, we do know that the government and regulatory officials are going through the bill one clause at a time, taking their time to confer with experts.