By Hassan Mehmood (Saudi Arabia)
Cryptocurrency is facing a strict attitude on the part of the government of India and the central bank as well. Indian supreme court lifted ban over cryptocurrency five months ago but the government is again preparing a legal framework to ban cryptocurrency in the country, official claims.
An official of India governments says that the Reserve Bank of India (RBI) and two ministries are involved to plan a ban on crypto-assets by designing a legal framework.
Ban on Cryptocurrency Trading
According to an Indian news site, Moneycontrol, anonymous official claims that two ministries- the Ministry of Law and Justice and the Ministry of Electronics and Information Technology- and the Reserve Bank of India have started preparations to ban Bitcoin in India. A government official said:
“There was a view in the government that banning it through a law would be more binding. It will clearly define the illegality of the trade. We have forwarded a note to related ministries for inter-ministerial discussions.”
Also read:After framing out the ban proposal by ministries and the central bank, it would appear in the parliament. “We are working on it. After inter-ministerial consultations, it (the note) would be presented to the cabinet for approval. Once Parliament resumes for the session, we are hoping to get it ratified, the official said while talking to the news outlet.
Fewer Chances for Cryptocurrency’s Ban
The chances of the blanket ban over cryptocurrency are now less than in 2019, CEO of Indian-based exchange CoinSwitch said while talking to Cointelegraph. Ashish Singhal said:
“Right now, the proposed draft bill has a low probability of passing. There are smart people in the government who would take the right steps forward rather than just banning cryptos altogether.”
He further stated that the government must take a step by step strategy to regulate cryptocurrency. “It will take time. A single regulation or a single bill will not change everything,” he added.
After ban removal, the trading of cryptocurrency has witnessed a significant increase. Exchange WazirX has seen 80% growth in March and April.
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