India would only ban cryptocurrency payments, not custody

India would only ban cryptocurrency payments

A report from local media outlet The Economic Times indicates that the government of India has changed its attitude towards cryptocurrencies. Blowing hot and cold for years, it seemed to have stopped on an outright ban in early 2021.

But in yet another turn of events of which it has the secret, the government of India has revised its copy. It would allow residents of the country to hold cryptocurrencies as assets, just like gold or stocks.

However, cryptocurrency payments would still be prohibited, according to a source close to the government. In addition, advertising for the services of exchanges and platforms in the sector would not be allowed either. Already, local businesses, including WazirX, have stopped their advertising campaigns.

👉 On the same topic – India accuses WazirX exchange of facilitating money laundering

Positioning halfway

According to the same source, the government confirmed that it wanted to have a “progressive and forward-looking” vision. Hence this halfway attitude, which would distinguish India from other countries.

The government met with players in the cryptocurrency industry on Monday to gather their views. At the opposite extreme, he had also interviewed the country’s central bank. This is no coincidence: the ban on payments would indeed distinguish cryptocurrencies from “classic” currencies, which would be enough to appease the Reserve Bank of India.

The bill is expected to be presented in the winter session of the Parliament of India. With the central bank sidelined, it could be the Securities and Exchange Board of India (SEBI) monitoring the sector, but nothing has been confirmed to date.

👉 Find all the news related to the regulation of cryptocurrencies

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About the author: Marine Debelloir


Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.

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