According to local media reports, the Indian government will not impose a complete ban on cryptocurrencies, but will instead regulate the sector.

On November 23, the Cointelegraph reported that the Indian government was considering a bill proposing the creation of an official digital currency banning all “private” digital currencies.

The news triggered a sales panic on the local crypto exchange WazirX the next day. The vague wording of the bill and the lack of clarification from the government has since left many observers divided over the prospects for cryptocurrency in India.

But the Indian news agency NDTV said on Thursday that it received details of a note circulating in the government about the proposed cryptocurrency bill.

NDTV correspondent Sunil Prabhu said the memo contains proposals to regulate cryptocurrencies as cryptocurrencies as the Securities and Exchange Board of India (SEBI) oversees the regulation of local crypto exchanges.

Investors will be given a specific time frame to advertise and transfer cryptocurrencies to SEBI-regulated exchanges, Prabhu said, indicating that private wallets may be banned. He added that this is part of the government’s efforts to prevent money laundering and terrorist financing.

Prabhu also said the government will define its plans for a digital central bank currency (CBDC) with the Reserve Bank of India (RBI), focusing on the crypto sector. No cryptocurrencies will be recognized as coins or fiat trades, indicating that they are intended to clearly distinguish between the two:

[Cryptocurrency] will not be accepted as a legal tender. This is clearly not the case. I think this is something that even the Prime Minister made very clear in his discussions at the meeting that this would not happen. ”
“I think they will do this [CBDC] as a standalone virtual RBI currency at a later date, so you can probably expect virtual currency to emerge soon, but it will happen at another time,” he added.

Related topics: WazirX, Presearch and Komodo Pool after data shows increased user activity

Some Indian crypto investors have welcomed the NDTV reports. Redditor u / ultron290196 posted a post on r / Cryptocurrency subreddit that expressed relief over the prospect of not having to worry about a complete ban.

The Indian cryptocurrency movement seems to have been discovered by the authorities, and they eventually decided to regulate the cryptocurrency as an “asset” for the cryptocurrency, and it was not recognized as a legal tender. […] Overall, it is a relief to us Indians.They said I would rather pay taxes to be an outcast.

Not everyone was happy with the details as u / No-Incident-8718 wrote: “This is the point. Do not use hard wallets, just replace wallets. Also use only Indian exchanges.”

Source: CoinTelegraph