The sounds from India about possible regulation of the crypto sector are not exactly positive. Where previously a course of legalization in combination with clear regulations would probably have been taken, it increasingly looks like a total ban is on the way. In any case, India’s central bank has made it clear that it is behind a total ban.
Reserve Bank of India
The country’s central bank, the Reserve Bank of India (RBI), has informed the body’s board that it is behind a total ban on cryptocurrencies in India, an anonymous source reported. The Economic Times.
During an extensive presentation, the board was informed that this would be the case. Among other things, cryptocurrencies could endanger macroeconomic stability and the management of crypto exchanges was also discussed extensively.
According to the central bank, it is virtually impossible to properly regulate the digital asset sector. This often also concerns assets that originated abroad. The fact that transactions cannot always be traced is also a thorn in the side for the RBI.
However, not everyone on the board of the RBI agreed with the bank’s position. For example, there were some who preferred a moderate approach to the crypto industry would see. Nevertheless, the official position of the RBI remains that a comprehensive ban on the crypto industry is the way to go.
Government of India
Of course, such a decision remains with the Indian government. After extensive deliberations, the Parliament of India will make a final decision on the status of the crypto sector in the country in the near future.
Ultimately, Prime Minister Narendra Modi will have the last word. A while ago he still seemed somewhat positive about the possibilities of the crypto industry. He did indicate at the time that governments around the world should work together to regulate the revolutionary sector.
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