When it comes to India, with its incredible number of coders and developers and the general tech-savviness of its population, it is surprising how resistant the Federal government is to adopting new technologies.

A prime example is the Federal ban on all forms of online gambling and land-based games of chance. This austere approach is not shared by individual states, many of whom are pro-online gambling and allow local players to play Online Slots, video poker, live dealer games and other forms of casino games.

 Bitcoin Is Not Legal Tender

While India is open to digital businesses and supports a thriving technology sector within its borders, it is not what you would call a pro-crypto market. The government has recently allowed individuals in India to buy Bitcoin and other virtual assets for investment purposes.

In January 2024, nine popular offshore exchanges, including Binance, were banned from India. After that, the government approved a select few locally approved exchanges for use by Indian investors. This only came to pass after it was revealed that close to 20 million locals owned some form of cryptocurrency, and it was reported that the government was losing out on a fortune in taxes.

While it is legal to own Bitcoin in India, it is not legal to trade it for goods and services as it is not considered legal tender. In fact, Reuters has quoted the Reserve Bank of India (RBI) as saying that “private digital currencies represent a macroeconomic risk” to the country.

 SEBI Stands With Crypto Fans

In an unexpected turn of events, India's Securities and Exchange Board (SEBI) has stepped up and voiced opposition to the RBI's alarmist stance.

The SEBI has submitted its proposal to the Indian government, which proposes a joint task force focused on overseeing and managing crypto adoption in the country, choosing to incorporate it into the local economic system rather than trying to exile it.

For its part, the SEBI proposed that it follow the example of other Securities and Exchange Commissions around the world and be responsible for managing any tokens deemed to be securities and any Initial Coin Offerings (ICO).

This proposal would, however, put any India-stablecoin under the control of the RBI. The RBI has continued to stress its complete disdain for any crypto that has its value pegged to a fiat currency, based on the potential for such an asset to impact the central bank's projected profits negatively.

This position means that even if the SEBI proposal gained traction at a Federal level, it is unlikely the country would see the launch of an Indian Rupee stablecoin under the current RBI regime.

 Crypto Gambling in India

Regardless of the governmental infighting regarding cryptocurrencies, local investors and gamblers are making the most of the value and freedom offered by the clever use of VPNs and Bitcoin.

Popular cryptocurrency gambling provider Stake Casino revealed record betting highs of over $100 million when it enabled Indian Rupee as a deposit option. They showed that in addition to seeing interest in the currency spike they continue to see high volumes of crypto transactions at the same time.

What would be of interest to the country’s growing online gambling population is if the SEBI managing tokens like Bitcoin would allow states like Goa, Sikkim, Daman, Meghalaya, and Nagaland, where online casinos are legal, to begin offering licensed crypto casino gambling.

Allowing this industry to flourish legally would not only open massive opportunities for the government to capitalise on the value of crypto but also enable it to lead the world in Bitcoin casino legislation.