As more consumers and businesses turn to Bitcoin, the Indian government is still studying the issue and has not provided clear regulatory guidance on the payment technology to date. The internal debate over Bitcoin highlights two competing impulses within the government of Prime Minister Narendra Modi. While officials want to foster innovation in the banking sector, they are wary that such technologies could facilitate cybercrime, bribery, tax avoidance, and money laundering.
“There is clearly a lot of thought going on in the various regulatory bodies and among government officials about this issue,” said Sasha Riser-Kositsky, an India analyst at the Eurasia Group. “I would be surprised if we don’t receive official guidance in the next two years.”