India is planning to regulate cryptocurrencies but before taking any decision it is waiting for the decision of the Supreme Court.
Indian Government Regulation of Cryptocurrencies
Those who are aware of this, they are saying that the government is considering whether the virtual currencies can be regulated by the Reserve Bank of India? They also say that the framework of regulation will be prepared only after negotiating with the central banks.
However, the regulation of cryptocurrencies does not allow them to use the payment system in any way. Nor can you use it as a legal tender. Digital currencies can be regulated by the RBI and cryptocurrency exchanges can be recognized by the Securities and Exchange Board of India.
The Indian Supreme Court will hear a case related to the regulation and ban of bitcoin and other cryptocurrencies in India on 27 April. This will guide the future course of government.
Cryptocurrency Ban in India
In 2018, the RBI banned the service of banks on platforms facilitating trading in cryptocurrencies. The central bank’s directive was challenged in the Supreme Court by cryptocurrency exchanges. On March 4 this year, the Supreme Court quashed the ban on transactions by cryptocurrency banks imposed by the RBI.
After this decision, most of the cryptocurrency exchanges in India have started the facility to deposit and withdraw money by the bank.