Indian authorities will not ban cryptocurrencies

The Indian Cabinet of Ministers will take a soft decision on the further status of cryptocurrencies in the country. This information was received by the Indian media in an explanatory note from the authorities.

Parliamentarians believe that the cryptosphere does not need a ban, but stricter regulation. Indian investors will be given time to legalize their investment portfolios, after which they will be able to trade on exchanges approved by the SEBI regulator.

Recall that at the end of December, information about a possible ban on all private cryptocurrencies in India caused panic on most of the country's cryptocurrency exchanges. Many Indian traders were quick to get rid of their digital assets. This led to panic selling on the local WazirX exchange.

Since the information in the bill was interpreted ambiguously, and the government did not give any comments, the public decided that the case was bad. However, on December 2, 2021, Indian media reported that, according to information from the Cabinet of Ministers, we are not talking about a ban on cryptocurrencies, but only about total control.

SEBI will oversee local exchanges. Residents will be able to trade only on licensed sites. Private wallets may be banned - all cryptocurrencies must be stored on approved exchanges. This will avoid money laundering.

The reaction to this information is different for everyone. Most breathed a sigh of relief because the government does not ban cryptocurrencies. Others believe that total control will harm the cryptosphere.

Also, as it became known from the same source, the central bank of India has postponed the introduction of CBDC for now. The authorities do not want to draw parallels between cryptocurrencies and the e-rupee.

It will be a separate digital currency with several important differences from other digital assets. Therefore, it will have its own regulations.

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