Co-ordinate to reports from local media, the Indian regime will not move for an outright ban on crypto and will instead regulate the sector.

On Nov. 23, Cointelegraph reported that the Indian authorities was considering a pecker proposing the creation of an official digital currency while imposing a ban on all "private" cryptocurrencies.

The news sparked panic selling on local crypto exchange WazirX the post-obit solar day. The neb's vague diction and lack of clarification from the government have since left many onlookers divided on the prospects for crypto in India.

But Indian news outlet NDTV reported on Thursday that it had obtained details of a cabinet note circulating in the authorities regarding the proposed crypto bill.

NDTV reporter Sunil Prabhu said that the note contained suggestions to regulate cryptocurrencies every bit crypto avails, with the Securities and Exchange Lath of India (SEBI) overseeing the regulation of local crypto exchanges.

According to Prabhu, investors will exist given a specific time frame to declare their crypto holdings and transfer them to exchanges regulated by the SEBI, which suggests that private wallets may be banned. He added that this is function of a push from the government to prevent coin laundering and terrorism financing.

Prabhu also said that the regime will put its plans for a primal depository financial institution digital currency (CBDC) with the Reserve Banking concern of India (RBI) on hold, while information technology focuses on the crypto sector. It volition non permit any crypto assets to be recognized every bit currencies or legal tender, suggesting that it is aiming to provide a clear distinction between the two:

"[Cryptocurrency] as a legal tender will not be accepted. That is a clear no. I recall that that is what even the prime minister in his deliberations at that meeting made absolutely clear to ensure that does not accept place."

"I think they will practice it [CBDC] equally a standalone virtual currency for the RBI at a afterward phase, so you can definitely expect a virtual currency soon, simply information technology will take place at a different time," he added.

Related: WazirX, Presearch and Komodo rally after data shows a surge in user activity

Some Indian crypto investors take welcomed the reports from NDTV. Redditor u/ultron290196 posted in the r/Cryptocurrency subreddit, expressing relief at potentially no longer having to worry about an outright ban.

"Information technology seems our Indian crypto movement is getting noticed past the government and they're finally deciding to regulate Cryptocurrency as Crypto 'Assets' and not recognized every bit 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," they said.

Non everyone was as pleased with the details, with u/No-Incident-8718 writing, "Hither'southward the catch. No utilize of hard wallets, only substitution wallets. Too, only using Indian exchanges."