People with knowledge of the matter told ET that active requests from companies including exchanges and platforms will be put on hold.
The government is finalizing legislation that will pave the way for regulation of crypto asset business prohibiting the use of virtual currencies For payments and transactions.
A government source said, “Active solicitation will not be allowed… the details of the bill are being finalised.”
The person said that the law which is in the works can be taken up for consideration in the cabinet in the next two to three weeks.
Securities and Exchange Board India ,Self) may be designated as the regulator, though a final decision is yet to be taken. “Discussions on regulation are underway,” the person said.
working on taxation aspects
He said the government is also working on aspects of taxation and the upcoming legislation is expected to address this.
The government is considering introducing the bill in the upcoming winter session of Parliament. ET reported on November 8 that the government may take a middle ground on cryptocurrencies and not opt ​​for an outright ban.
At a meeting chaired by Prime Minister Narendra Modi on Saturday, a person aware of discussions on cryptocurrency said the overall view within the government is that the steps taken should be proactive, “progressive and forward-looking” as it was an evolving technology.
The Parliamentary Standing Committee on Finance, which met representatives of the crypto industry on Monday, was also in favor of regulation, not outright bans, a stand supported by industry representatives.
The Reserve Bank of India (RBI) has expressed concern over cryptocurrencies that pose a threat to macroeconomic and financial stability as well as capital controls. In view of this, it is understood in favor of the ban.
RBI Governor Shaktikanta Das reiterated on Tuesday that the numbers cryptocurrency Accounts in India appear to be exaggerated. Speaking at an event of State Bank of India in Mumbai on Tuesday, he said cryptocurrencies require in-depth discussion and are yet to see well-informed debate on key concerns, some of which were raised by the RBI.