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A government official reportedly confirmed that a “note” regarding the legal framework for cryptocurrency in India has been forwarded to related ministries for inter-ministerial discussions. It will then be presented to the cabinet for approval.
Status of Indian Crypto Bill
India’s cryptocurrency bill made a comeback on Tuesday after Moneycontrol reported a “note” seeking to “ban cryptocurrency trading,” citing an unnamed government official. On condition of anonymity, the official explained that the Indian government has held consultations with the Ministry of Law, the Ministry of Information and Technology and the Reserve Bank of India (RBI) on a framework for a law that “will formally terminate. cryptocurrency trading in India, “the publication announced.
“We have forwarded a note to related ministries for inter-ministerial discussions … We are working on it,” he added, elaborating:
After the inter-ministerial consultations, the (note) will be presented to the cabinet for approval. Once Parliament resumes for session, we hope it will be ratified.
“There was an opinion in the government that banning it by law would have been more binding. It will clearly define the illegality of the trade, ”the government official said.
This isn’t the first time the media has reported that the Indian government is planning to ban cryptocurrency, and it’s also not the first time such a note has been discussed. In June, the Economic Times reported that “India is trying to introduce a law to ban cryptocurrencies” on the basis of a note that “it has been moved (by the finance ministry) for an inter-ministerial consultation.”
However, cryptocurrency exchange executives told news.Bitcoin.com that a blanket ban is unlikely considering much has developed since the crypto law was filed with the finance ministry early last year. The bill was drafted by the inter-ministerial commission headed by former secretary of finance and the Department of Economic Affairs (DEA) Subhash Chandra Garg, who has now retired from the government. He recently stated that cryptocurrencies can be regulated as commodities. Executives said Indians are generally undaunted by news of the cryptocurrency ban while waiting for the government to make a formal announcement.
Additionally, a recent DEA response to a Right to Information (RTI) request suggested that the government is not entirely happy with the existing bill. Crypto Kanoon’s lawyer Mohammed Danish explained that “If the government. decides to pass a law banning cryptocurrencies, this law can be challenged by companies, merchants or cryptocurrency enthusiasts based on various rights available to them under the Constitution.
Meanwhile, the cryptocurrency industry in India has grown significantly since the supreme court overturned the central bank’s circular banning banks from providing services to cryptocurrencies. Local cryptocurrency exchanges have seen a growth in trading volume of up to 10 times and a significant increase in the number of registrations.
Do you think India will ban cryptocurrencies? Let us know in the comments section below.
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