Friday, July 30, 2021

India’s central government reviews legislation that could ban crypto.

The Takeaway:

India's central government is reviewing key parts of the legislation that could ban cryptocurrencies in the country.

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According to the BloombergQuint report, regulators, stakeholders, and the government is addressing three key issues in legislation that could ban cryptocurrencies in the country. First, whether or not to impose a total prohibition on cryptocurrencies in India. If they decide against this, the next consideration will be how authorities should regulate them. Finally, they will also consider which kinds of activities should be permitted and discouraged. India is behind if compared to other countries when it comes to regulating cryptocurrencies.


Government attempts to regulate the crypto market. 

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was introduced during the Indian Parliament’s Budget Session. However, for undisclosed reasons, no action was taken. The government is combing through the bill clause-by-clause. The situation is unlikely to be resolved during the upcoming Monsoon Session of the Parliament. Earlier, the central government had considered convening a fresh panel of experts to discuss crypto regulations following a similar panel in 2017. In 2018, the Reserve Bank of India (RBI) barred financial institutions from dealing with cryptocurrency-related businesses and customers. However, the Supreme Court struck down this measure in March 2020.


Global crypto exchanges are eyeing the Indian market. 

Despite regulatory uncertainty, global crypto exchanges are still considering how to enter the Indian market. Reportedly, Kraken, Bitfinex, and KuCoin have all initiated talks to better understand the Indian market and entry points. Earlier, the crypto exchange giant Binance set a precedent by acquiring WazirX in 2019. However, the oldest crypto exchange in the country has been facing some difficulties recently. Aside from issues with lenders mentioned above, the exchange recently struggled to deal with spiking volume from demand for Dogecoin.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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