According to a report from Indian news website Moneycontrol, authorities in India are actively working on a legal framework to ban cryptocurrencies on the subcontinent. Indian officials are making preparations to pass a law banning cryptocurrency trading. The report cited an anonymous official saying that consultations between the Ministry of Electronics and Information Technology, the Ministry of Law and Justice, and the Reserve Bank of India (RBI) had begun regarding the framework of such a law.
The government is considering passing a law to ban crypto.
The official said, “once the Parliament resumes for the session, we are hoping to get [the law] ratified.” Indian Parliament is expected to reconvene in late August or early September. The anonymous official noted that the government was considering banning crypto through legislative change rather than methods such as the blanket ban from the RBI for banks dealing with crypto firms as it would be more binding. The law would clearly define the illegality of the trade, the person said. Crypto regulations in most parts of the world are still in a grey area, but authorities are working to enforce regulations.
The Supreme Court had overturned the RBI’s banking on crypto.
In March, the Supreme Court of India had struck down the blanket ban on banks dealing with crypto businesses, which had been imposed by the RBI since July 2018. The Supreme Court’s decision led to a boom in new exchanges across the country. Crypto exchanges reported a surge in crypto users amid the pandemic. As reported earlier, India recorded a massive surge in bitcoin peer-to-peer trading this year. If the report is to be believed, the fight of the Indian crypto community is still not over, and a new law banning the use of crypto is probable.
