New Delhi: Amid speculations of blanket ban on crypto trading, it has emerged that Government is not contemplating debarring trade in digital currencies. Rather, a mechanism on crypto regulation is in the works.

According to reports, the government will give a certain time-frame to crypto investors to declare their crypto holdings and then allow them to hold their assets on crypto exchanges regulated by SEBI.

On November 23, reports emerged that government is about to bring a bill in the Winter Session of Parliament for debarring all private cyrpto currencies and bringing its own desi digital currency, operated by Reserve Bank of India (RBI).

The news was enough to leave cypto investors frightened and panicky. Many sold their holdings on crypto exchange WazirX the following day.

However, a leading portal in its December 2 report said that it has acquired details on the cabinet note regarding the proposed cryptocurrency bill.

NDTV reporter Sunil Prabhu stated that the note possesses a proposal to regulate cryptocurrencies as crypto assets that will fall under the regulatory preview of the Securities and Exchange Board of India (SEBI).

Besides, the plan for a central digital bank currency (CBDC) with the Reserve Bank of India (RBI) will be put on hold as the government is currently focussing on the crypto sector.

A couple of crypto investors have welcomed the move of regulating crypto currency rather than imposing a ban on it.

“It seems our Indian crypto movement is getting noticed by the government and they’re finally deciding to regulate Cryptocurrency as Crypto “Assets” and not recognized as legal tender. […] All in all, it’s a sigh of relief for us Indian folks. I’d rather pay some tax than become an outcast,” a user said.

However, some were not pleased with the details. “No-Incident-8718” wrote, “here’s the catch. No use of hard wallets, only exchange wallets. Also, only using Indian exchanges.”