The authority in India is reportedly looking to establish regulations for the crypto sphere, rather than executing an outright ban on it, as revealed by local news. 

Specifically, on November 23rd, the Indian authority was reported to be discussing the possibility of introducing a bill aiming at pushing for the development of an official digital currency while imposing a ban on all “private” cryptocurrencies.

The news reportedly led to panic selling across local crypto exchange WazirX the day after, with the bill’s unclear wording and clarification insufficiency have divided the onlookers into two distinct groups, regarding the crypto scene in the country. 

However, Indian news outlet NDTV reported on December 2nd that it successfully acquired specifics related to a cabinet note circulating in the government regarding the proposed crypto bill.

NDTV reporter Sunil Prabhu reportedly disclosed that the note includes recommendations for the regulation of cryptocurrencies as crypto assets, with the Securities and Exchange Board of India (SEBI) in charge of oversight for the regulation of crypto exchanges in the region.

Per Prabhu, a particular time frame will reportedly be available for investors to declare their crypto holdings and move them to exchanges under the regulation of the SEBI, which may mean private wallets will face prohibition. 

He further remarked that this initiative is included within the scope of a push from the authority to stop money laundering and terrorism financing.

Prabhu also stated that the authority will temporarily delay its plans for a central bank digital currency (CBDC) with the Reserve Bank of India (RBI) while concentrating its attention on the crypto sphere. 

“[Cryptocurrency] as a legal tender will not be accepted. That is a clear no. I think that that is what even the prime minister in his deliberations at that meeting made absolutely clear to ensure that does not take place.”