India is considering legislation banning cryptocurrencies

The Indian government is considering regulations banning cryptocurrencies in the country.

The government, along with many other regulators and stakeholders, is addressing three key issues. First, whether or not to impose a total ban on cryptocurrencies in India. If they decide against it, the next consideration will be how the authorities should regulate them. Finally, they will also consider which types of activities should be allowed and which should not be encouraged.

The official law regulating cryptocurrency and digital currency 2021 was unveiled during the budget session of the Indian parliament in the spring. However, for reasons not mentioned, no action was taken. With the government carefully approving every provision of the bill, the situation is unlikely to be resolved in the upcoming monsoons session of the National Assembly. In addition, the government had previously considered convening a new panel of experts to discuss crypto regulations after setting up a similar panel in 2017.

Try to ban electronic money from RBI

In 2018, the Reserve Bank of India (RBI) banned regulated companies from dealing with companies and customers related to cryptocurrencies. Following petitions from stock exchanges in India, the Supreme Court overturned the measure in March 2020.

Although this is not an official judgment, the RBI recently made an informal motion with a similar aim to its action in 2018. Accordingly, credit platforms will cut ties with the e-money business. This reportedly affected the operation of some exchanges such as WazirX. However, the RBI recently clarified its statement and allows companies to do business with crypto companies.

Exchanges in India

Amid this regulatory uncertainty, exchanges around the world are still debating how to enter the Indian market. Kraken, Bitfinex and KuCoin have reportedly all started negotiations to explore the Indian market and entry points. While one exchange begins to evaluate the Indian company it is looking to acquire, the other two are still weighing options. You can choose between setting up your own branch in the country or buying a local business.

Binance set a precedent for the latter option with the purchase of WazirX in 2019. However, the oldest stock exchange in India recently encountered some difficulties. In addition to the aforementioned issues with the aforementioned loan platforms, the exchange is struggling to cope with the rise in volume due to the escalating demand for DOGE. In addition, India’s financial regulator, the General Department of Law Enforcement, is currently investigating WazirX for alleged aiding and abetting in money laundering.

Minh Anh

According to Beincrypto

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