Editor's Note: This article is from:Cointelegraph Chinese (ID: CointelegraphChina)Editor's Note: This article is from:

Cointelegraph Chinese (ID: CointelegraphChina)

, Author: Samuel Haig, Compiler: Lennon, reprinted with authorization by Odaily.

India’s parliament has yet to rule on the “Cryptocurrency Ban and Regulation of Official Digital Currency Bill” drafted in 2019, a pending bill that may still hinder cryptocurrencies from flourishing in India, Business Insider reported on March 7. .

If passed, the bill would introduce a unique regulatory framework for virtual currencies, utility tokens and commodity-backed tokens — likely creating a complex exclusionary legislature for blockchain businesses.

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Supreme Court reverses RBI's cryptocurrency ban

The ban, which has been in place since April 2018, targets companies that provide “any services related to virtual currencies,” and at one point prohibited financial institutions from providing banking services to companies operating in cryptocurrencies.

In less than 24 hours after the ban was lifted, several Indian cryptocurrency exchanges including Unocoin, Wazirx and CoinDCX have resumed fiat currency deposit services.

In response to the repeal of the ban, HashCash Consulting also announced that it will invest $10 million in India’s cryptocurrency industry this year.

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In addition to the hostile bill drafted in 2019, India’s cryptocurrency community must also win the RBI’s appeal to the Supreme Court to strike down its ban.

On March 6, the Economic Times reported in its report citing anonymous sources that the RBI is concerned that a widely used virtual currency could pose risks to India's banking system.

Sohail Merchant, India's Blockchain and Cryptocurrency Council and a member of the Internet and Mobile Association, pointed out that lawmakers are hostile to cryptocurrencies, but the main goal of Indian blockchain industry stakeholders is to "talk to policymakers, And establish a comprehensive framework for crypto-assets in India, thereby paving the way for innovation.”

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