In South Asia, countries have varying stances on cryptocurrency regulation, but among them, India has been actively moving toward a more regulated approach to cryptocurrencies.

### India

India's relationship with cryptocurrency has been complex and evolving. Initially, the Reserve Bank of India (RBI) imposed a banking ban on cryptocurrency transactions in 2018. However, in March 2020, the Supreme Court of India lifted the ban, allowing banks to facilitate cryptocurrency transactions again.

Since then, India has been working on a comprehensive regulatory framework for cryptocurrencies. In 2021, the government proposed the Cryptocurrency and Regulation of Official Digital Currency Bill, aiming to create a regulatory environment for cryptocurrencies while potentially introducing a central bank digital currency (CBDC). Although there have been discussions about a potential ban on private cryptocurrencies, as of mid-2024, the focus seems to be more on regulation and taxation rather than an outright ban.

### Other South Asian Countries

Other South Asian countries have also taken steps regarding cryptocurrency regulation, though their approaches vary:

- **Pakistan**: Cryptocurrency trading is not explicitly illegal, but the State Bank of Pakistan has issued warnings against it. Regulatory clarity is still lacking.

- **Bangladesh**: The government has taken a more conservative approach, declaring cryptocurrency transactions illegal under the country’s anti-money laundering laws.

- **Sri Lanka**: The Central Bank of Sri Lanka has warned against the use of cryptocurrencies, citing lack of regulation and investor protection, but there is no outright ban.

- **Nepal**: The use of cryptocurrencies is banned, with authorities actively working against crypto-related activities.

- **Bhutan and Maldives**: These countries have not established clear regulatory frameworks for cryptocurrencies, resulting in a gray area for crypto activities.