India’s central government is reportedly reviewing the bill that would ban the use of cryptocurrencies in the country in what could spell a last-minute change of direction to the laws around the local crypto sector. According to the BloombergQuint report, the government of India is working alongside sector regulators and stakeholders in contemplating whether or not a total ban on cryptocurrencies should be brought into force. Governments across countries are actively working on regulating cryptocurrencies.
The government is engaged in a clause-by-clause deliberation of the crypto bill.
As reported earlier, the proposed law, known officially as the Cryptocurrency and Regulation of Official Digital Currency Bill, was finally brought before parliament this year. However, the government failed to progress with the bill, and is now engaged in a clause-by-clause deliberation, which is expected to push the legislative process into the following parliamentary session. There has even been the suggestion that the central government could convene a new committee of experts to consider the proposals. The second such committee has been constituted since the crypto bill was first proposed.
Governments across countries continue to work on crypto regulations.
The developments are the latest twist in the ongoing saga of cryptocurrency legislation in India, which has seen various contradictory moves from regulators and government authorities in recent years. The Reserve Bank of India had issued a de facto ban on crypto businesses in 2018 by ruling that banks were not allowed to serve clients operating in the sector. This was later overturned by the Supreme Court last year before the RBI attempted to issue another informal position statement to the same effect. Crypto regulations are not only the concern of Indian regulators, as governments worldwide are also working on regulating the sector.