Since the Reserve Bank of India’s (RBI) ban on Bitcoin, the country’s cryptocurrency industry has been in a state of limbo. The RBI ban, which was first announced in April 2018, prohibited banks and financial institutions from providing services to cryptocurrency businesses.
This effectively cut off the industry from traditional banking channels and made it difficult for companies to operate.
The ban was met with strong opposition from the crypto community, and a number of petitions were filed against it. However, the RBI stood firm on its decision and the ban remained in place.
In the months following the RBI ban, a number of cryptocurrency exchanges shut down their operations in India. Some, like Zebpay, managed to find ways to continue operating despite the ban by using peer-to-peer (P2P) methods to allow users to trade directly with each other.
The situation remained largely unchanged until recently, when reports surfaced that the government was considering lifting the ban on cryptocurrency trading. This was followed by a draft bill that proposed a complete ban on cryptocurrencies, which caused confusion and concern among industry participants.
However, it now appears that the government is backtracking on its earlier stance and is instead looking to regulate the cryptocurrency industry. A panel set up by the government is reportedly working on a framework for regulating cryptocurrencies, and a draft bill is expected to be presented to parliament soon.
This is welcome news for the Indian cryptocurrency industry, which has been struggling to survive since the RBI ban was put in place. If the government does indeed lift the ban and put in place regulations, it would be a positive development for the industry and could lead to more exchanges and businesses setting up shop in India.
So far, there is no official word from the government on when or if the ban will be lifted. However, given the recent developments, it seems likely that we will see some progress on this front in the near future.