India has had a rocky relationship with cryptocurrency so far considering that Reserve Bank of India sent out a circular warning against cryptocurrency and also demanded a ban of cryptocurrency from the court. The final hearing of that case will take place in this month itself. Very recently, Securities and Exchange Board of India has organized for its officials various tours to other countries to see to it that they learn about Initial Coin Offerings and digital currencies. As per the report that was submitted during the year 2017-18 it was stated that these tours were conducted in Switzerland, Japan, and the United States.
The tours were conducted in at Financial Services Agency of Japan, the Financial Conduct Authority that is based in the UK and in Switzerland, the authority whose actions were learned from was Swiss Financial Market Supervisory Authority, and this organization is also called FINMA. The rationale behind these tours was stated to be a better understanding of cryptocurrency and the various mechanisms as well as a better knowledge of the systems that are operating in the sector. It can be believed that India gradually understands the importance of virtual currency and the need to cultivate a better understanding of the same. Moreover, this is not the first time that an attempt has been made by the financial bodies of India to look into the manner in which cryptocurrency operates, even in the annual report, that is, the report published in the year 2017-18 stated the various regulations that were put forth in the numerous countries over a period of time. However, the focus of this section was the regulation that was put by the countries of Japan and South Korea. As of now, the Reserve Bank of India is considering coming up with a digital currency that is backed by the rupee coin in India.
As of now, the fate of cryptocurrency in India hangs in balance as the final hearing regarding cryptocurrency will take place in this month itself. Until the final date, the court has upheld the decision of RBI and the court has also refused to grant any relief to those affected by the ban called for by Reserve Bank of India.