According to a report by Economic Times, the country’s finance ministry has sent the proposal for inter-ministerial consultation. The department then expects to forward the plan to its top cabinet, which operates directly under the country’s Prime Minister Narendra Modi. The move further allows the inter-ministerial committee’s proposal to be tabled as a bill in the parliament’s lower house. Earlier this year, the Supreme Court of India had declared the banking ban on crypto by the RBI as unconstitutional and enabled all banks in India to provide services to crypto companies.
The proposed law could criminalize the use of crypto in India.
According to the news report, a note has been moved by the finance ministry for inter-ministerial consultations. This note will be sent to the cabinet and subsequently to the parliament of India. It is similar to the earlier proposal of the inter-ministerial committee, then the law will be a huge blow to India’s crypto community. Earlier in July 2019, a high-level government panel prepared a draft proposing a total ban on the use of cryptocurrencies in the country. The draft had proposed a fine of up to 25 crore INR ($3.29 million) and imprisonment of up to 10 years for anyone dealing in crypto.
The crypto community in India continues to grow.
The Supreme Court of India had earlier declared the banking ban put on by the Reserve Bank of India for crypto activities as unconstitutional. The decision by the highest court of India was a result of a long legal battle, and it proved to be a huge win for India’s crypto community. The CEO of the Indian crypto exchange WazirX tweeted that he is confident that the country’s Prime Minister would not stop a booming sector. Since the Supreme Court judgment, several positive developments have taken place in the Indian crypto industry.
Yet another FUD is here. Few things to note:
1. Its just a note
2. Committee will need to be formed
3. Draft needed
4. Industry consultations
5. Parliamentary approval
— Nischal (WazirX) ⚡️ (@NischalShetty) June 12, 2020