Proposed cryptocurrency ban legislation reportedly under review by the Indian government

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According to reports, the Indian government is reviewing the modalities for banning or regulating cryptocurrencies in the country.

According to Bloomberg Quint, reports suggest the government is in talks with financial regulators and industry stakeholders to review the provisions of an earlier proposal that effectively called for a blanket ban on crypto in India.

As early as February, several reports from India fueled fears of a possible crypto ban, which has not yet materialized. Instead, the emerging narrative outside of the country is that authorities are considering a more nuanced approach to cryptocurrency regulations, with Blanker bans out of the question.

The anonymous source quoted by Bloomberg Quint said the current discussions are going through the clauses of the previous crypto-ban law to decide whether to take or seek an alternative approach.

According to the publication, these discussions take place on three fronts. The first two questions are supposedly about whether crypto can be regulated or whether the government should use the “ban hammer”.

The third topic on the agenda is reportedly identifying the types of crypto activity that could be allowed under a standardized cryptocurrency regulatory paradigm in India.

As Cointelegraph previously reported, the Reserve Bank of India is maintaining its anti-crypto stance. The RBI previously announced that it had communicated its reservations about cryptocurrencies to the federal government.

As early as May, the RBI made it clear that commercial banks were not instructed by the central bank to refuse service on crypto exchanges. In fact, in March 2020, India’s Supreme Court overturned a previous RBI mandate that prohibited banks from serving the country’s exchanges.

Related: India will reportedly ditch the Bitcoin ban agenda in favor of asset classification

Given the deliberate pace of ongoing discussions, the source quoted also added that it is unlikely that an amended bill on crypto regulation will be introduced during the upcoming monsoon session of parliament starting in July.

Meanwhile, three major cryptocurrency exchanges – Kraken, Bitfinex, and KuCoin – are reportedly considering expanding their business into India to provide services to the country’s estimated 15 million crypto investors.