The government of India is reportedly discussing a regulatory framework for cryptocurrencies with the central bank, the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI). Furthermore, the government is awaiting the outcome of another cryptocurrency case at the supreme court to make its final decision on crypto regulation.
Indian Government Expected to Finalize Crypto Regulatory Decision After Supreme Court Hearing
The Indian government has so far been quiet about whether it plans to regulate or ban cryptocurrencies. While there is a draft bill that seeks to ban all cryptocurrencies except state-issued ones, Bloombergquint reported on Friday that the government is currently discussing the prospect of regulating cryptocurrencies with the central bank. Citing “people aware of the development,” journalist Nikunj Ohri detailed:
The government is weighing whether the virtual currencies can be regulated by the Reserve Bank of India … A framework for the regulation will be decided upon after deliberations with the central bank.
The discussions are at a nascent stage but the framework may not permit the use of cryptocurrencies in the country’s payment systems and will not recognize them as legal tender, the publication noted, elaborating:
The digital currencies may be notified or approved by the RBI, and cryptocurrency exchanges could be recognized and regulated by the Securities and Exchange Board of India.
Furthermore, the government is reportedly waiting for the outcome of another cryptocurrency case at
