India government abandons the plan to ban crypto

Local reports say that the Indian government abandoned the plan to ban cryptocurrencies and instead wants to regulate.

According to local media outlet NDTV, the Indian government plans to regulate private cryptocurrencies instead of banning them.

Note that this comes after the Indian regulators announced a plan to ban all private digital assets last month. But, the plan to prohibit private cryptos was met with strong opposition from the country's crypto community.

Based on the reports provided, the Securities and Exchange Board of India (SEBI) will be responsible for crypto trading platforms. Further, the government firmly said it has no intentions to follow El Salvador's footsteps by making Bitcoin legal tender.

For instance, the bill that the government introduced uses the term "crypto assets." This is to refer to cryptocurrencies and highlight that they will not be approved as a means of payment. And there will be a date for Indians to come to the exchange and record their crypto holdings.

However, the crypto exchanges that fail to comply with the new rules will be slapped with ₹20 crores ($2.6 million) in their faces. Not only this, but the managers could also face up to 1.5 years behind bars.

While the government announced all these details, the bill is likely to be cleared by the cabinet by the end of next week based on the report.