The Indian government plans to introduce a new law that will ban cryptocurrency, officials said. When the Parliament resumes, the new law will be presented for approval.
05 August, 2020 | AtoZ Markets – India continues to establish itself as one of the world’s favourite blockchain hubs. The blockchain and crypto industry has contributed significantly to the Indian economy after the Supreme Court lifted the ban on cryptocurrency banks in India in March this year. Later, due to coronavirus pandemic, several exchanges reported rapid user growth and improving the digital currency business case. Some crypto exchange platforms reported a 400% surge in trading activity.
India May Ban Virtual Currencies
Trouble may be on the horizon for India’s crypto industry. Officials said the government is considering a new law to ban crypto. In the first official revelation on the future of digital currencies, the government said it had set up an inter-ministerial committee that was examining the bill. Then, The law will be submitted for approval. Department of Economic Affairs (DEA) said:
“The government had set up an inter-ministerial committee (IMC) for examining the issue of cryptocurrencies. Its members has since submitted the report of the IMC on VCs (virtual currencies) but is awaiting approval of the government. The government will now examine the report and bill through inter-ministerial consultation by moving a cabinet note in due course.”
DEA’s response also suggests that the government is not completely happy with the current crypto law. Indian institutions have long been hostile to cryptocurrencies because it believes that people use such currencies for anti-social purposes such as financing terrorist activities.
In 2018, the Reserve Bank of India (RBI) banned all banks from crypto-related businesses. It caused a significant number of local exchanges to close their activities or shut down some operations.
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