There is no special comprehensive legislation to regulate relations in the field of the blockchain and cryptocurrencies. Regulators still adhere to the prohibitive approach in the regulation of cryptocurrencies. Given that the ban imposed by the RBI is currently the only regulatory act in the field, it is difficult to assess convergence. However, at the same time, in India, a working group was created at the government with a view to drafting a regulatory framework for cryptocurrencies.
Definiteness of Legal Regulation
There is no special legislation that regulates all issues related to blockchain and cryptocurrencies in the country. The status of cryptocurrency in India is not defined. Due to the ban imposed by the RBI, individuals cannot perform operations with cryptocurrencies in the country's financial institutions. Nearly all operations with cryptocurrencies were banned: maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase/sale of VCs.
Stability of Legal Regulation
The crypto industry in India has literally been torn apart by statements of regulators, the prohibitions imposed by the Reserve Bank and the ongoing proceedings in the Supreme Court.
It is expected that the issue will be resolved within a year with the decision of the Supreme Court concerning the ban if cryptocurrencies' transactions that will become the basis for the development of the necessary legislation. At the same time, we cannot make any forecasts whether this legislation will be formulated in a positive way, or will appear negative and prohibitive.
Adequacy of Legal Regulation
In fact, cryptocurrencies are outside the legal field, their status is undefined. Moreover, the existing regulation by the Reserve Bank is formulated in a prohibitive manner: financial institutions cannot work on their own or provide cryptocurrency services to other persons and companies. Regulation of mining, ICOs, taxation is not clear or completely absent.