Following reports that the Indian government plans to ban cryptocurrencies entirely, pro-crypto groups in India are lobbying authorities with the hope that they will loosen their stance on space. Banks had previously been asked to stop serving customers who have been performing crypto-related activities.
India’s Nasscom is urging authorities to reverse their position, and said,
Since cryptocoins and tokens are an important component of the blockchain technology, the draft regulations appear to exclude testing of smart contracts and other approved blockchain technology under the sandbox …The decision to keep cryptocurrencies, trading of cryptocurrencies and initial coin offerings out of the purview of the regulatory sandbox is still not clear.
India’s central bank, the Reserve Bank of India (RBI), last month released a report that detailed their examination of new technologies, but the report said that digital currencies would not be considered because they believed it provided no benefits to the economy.
Last panel, the government formed panel to examine the cryptocurrency space, and conflicting reports arrived regarding the opinion on how to approach crypto. There has also been a rumour that the government may launch its own Central Bank Digital Currency (CBDC), though they have denied this.