Indian lawmakers are planning to ban cryptocurrencies entirely in the country. The proposed law will provide a framework for the creation of an official digital currency to be issued by the Reserve Bank of India and allow certain exceptions to promote blockchain, the underlying technology of cryptocurrency and its uses, according to a bulletin of the lower house of parliament. The central bank is looking into the need for a digital version of the fiat currency and implementing it.
The Reserve Bank of India had earlier banned cryptocurrencies.
The central bank of India had in 2018 banned crypto transactions after a string of frauds in the months following Prime Minister Narendra Modi’s sudden decision to ban 80% of the nation’s currency. Cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and won respite in March 2020. The Supreme Court had quashed the central bank’s circular on the grounds of disproportionality. The judgment, authored by Justice V Ramasubramanian, noted that the RBI has failed to show “at least some semblance of any damage suffered by its regulated entities” to back its decision to bar cryptocurrencies in India effectively.”
Regulations around cryptocurrencies continue to get strict.
Regulators around the world are monitoring the crypto market closely as lawmakers continue to propose strict regulations. As reported earlier, the Philippines’ central bank has issued new guidelines for the cryptocurrency industry. They include the need to apply for an operating license, the minimum capital for service providers, and stringent anti-money laundering programs. In its statement, the Bangko Sentral ng Pilipinas (BSP) pledged “to provide an environment that encourages financial innovation while safeguarding the integrity and stability of the financial system.”