While the industry views the announcement as a soft step toward regulation before crypto-specific legislation is enacted, the government has not suggested the move is a step toward regulation. A similar, but much stronger, move was the rule to tax crypto businesses before crypto-specific legislation, announced in February. At the time, a senior finance ministry official said “just because it is taxed does not make it legal.”
Source: https://www.coindesk.com/policy/2022/05/02/india-includes-crypto-businesses-in-new-rules-for-cyber-security/?utm_medium=referral&utm_source=rss&utm_campaign=headlines