The Indian Ministry of Finance and its Regulatory Authority, the Reserve Bank of India (RBI) have been some of the most influential players in the international cryptocurrency markets. In April 2018, the RBI declared that all entities regulated by it will not deal with or provide services to any individual or business dealing in virtual currencies. This announcement had a major impact on cryptocurrency trading within India as well as on foreign exchanges.
Despite this ban, several Indian companies are actively involved in developing blockchain based solutions for various industries such as banking and finance. The government has also expressed interest in exploring DLT (Distributed Ledger Technology) applications for improving governance and efficiency at a national level.
At present, there is no specific policy framework governing cryptocurrencies in India but regulatory authorities like SEBI (Securities & Exchange Board of India), IRDAI (Insurance Regulatory & Development Authority Of India) and PFRDA (Pension Fund Regulatory & Development Authority Of India) are keeping an eye on developments related to digital assets including cryptocurrencies so that they can take appropriate action if necessary under their respective existing regulations.
In conclusion, while cryptocurrency regulation remains uncertain across much of India, many organizations remain hopeful that future policies will be designed to accommodate new technologies like blockchain while protecting investors from frauds and scams associated with them.
