According to India's FM, a significant amount of international cooperation is required to put a ban on cryptocurrencies into effect.
A Money Control article claims that the Reserve Bank of India (RBI) is pushing for a complete ban on cryptocurrency.
Nirmala Sitharaman, the finance minister, has pointed out that for the RBI to implement such a prohibition effectively, there must be widespread support. Because cryptos are a worldwide phenomenon, regulatory arbitrage must be avoided.
For years, the Indian government has struggled with how to regulate cryptocurrencies, but it has yet to publish a consultation document that would clear up the situation.
The eagerly anticipated crypto law for India was meant to be completed by May, but the market is still in the dark. Some of the leading crypto businesses in India are requesting more regulatory certitude in the interim.
The governor of the Reserve Bank of India (RBI), Shaktikanta Das, has frequently voiced serious worries regarding digital currencies.
The RBI chief most recently stated that cryptocurrencies constituted a "serious hazard" to financial stability while also stating that the new asset class has no intrinsic value.
According to him, private currencies can weaken a nation's ability to manage the money supply.
Local media sites claimed in November that the government was getting ready to introduce a bill that would outlaw all privately held cryptocurrencies in the nation.
However, following a fierce outcry from the nation's cryptocurrency industry, India has since backtracked on its decision to outlaw cryptocurrencies.