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Crypto Regulation Moves in India: Caution Prevails, Says Reuters

India is currently taking a cautious approach to cryptocurrency regulation, as reported by Reuters.

Instead of creating a comprehensive legislative framework, the Indian government is opting for partial oversight due to concerns about systemic risks associated with cryptocurrencies.

The Reserve Bank of India's (RBI) arguments suggest that effectively managing these risks through regulation could prove challenging.

While other countries like the United States advance their crypto frameworks, India is delaying a formal legislative position.

This decision follows a history of indecision, including a failed attempt in 2021 to ban private cryptocurrencies altogether.

India's G20 presidency in 2023 called for a global regulatory framework for digital assets, yet discussions about its own stance were postponed.

Currently, digital asset exchanges can operate in India under strict regulatory requirements to prevent money laundering, but trading activity has slowed significantly.

Despite these challenges, Indian investments in digital assets have reached around $4.5 billion, a figure that does not currently indicate systemic risk.

Additionally, the RBI has expressed concerns that the rise of stablecoins could threaten the integrity of India's national payment systems.

In contrast, Bybit is revitalizing its presence in India, offering full access to its services after a recent regulatory nod, highlighting the contrasting dynamics in the global crypto landscape.