- Cryptocurrency ban in India discussed during the Monsoon Session of Parliament, which started on 14 September on Tuesday
- In March 2020, the Supreme Court of India in its historical judgment struck down the two-year-long blanket ban on cryptocurrencies
India’s saga of banning crypto trade or not could have made a decisive turn as news reports began to filter that the country will soon introduce a new law to prohibit cryptocurrency trading. According to the sources who wanted to be anonymous stated that matter was discussed during the Monsoon Session of Parliament, which started on 14 September on Tuesday.
Last month, Indian media outlet, moneycontrol reportedly mentioned that the Indian government is preparing to propose a law to ban cryptocurrency trading in the upcoming parliament session. The draft bill is expected to be discussed by the Union Cabinet before presenting the bill in parliament as disclosed by officials per Bloomberg Quint.
In March 2020, the Supreme Court of India in its historical judgment struck down the two-year-long blanket ban on cryptocurrencies. Indian cryptocurrency exchanges, since then, have also observed a sharp increase in trading volume. Despite the Supreme court’s decision in favour of cryptocurrency trading, there has been regulatory uncertainty around the trading of cryptocurrency.
The new cryptocurrency trading ban bill which is yet to be discussed in parliament, if passed will have negative repercussions. It will affect nearly 1.7 million cryptocurrency traders in the country and many blockchain companies and exchanges facilitating cryptocurrency trading.
A New Delhi based lawyer said that the government should regulate cryptocurrency trading instead of imposing a ban on crypto. He mentioned that India should introduce a regulatory framework to protect naive retail consumers and this way RBI and the government can have enough oversight of cryptocurrency businesses. These regulations can attract new investors and businesses.
Use of Blockchain to be Encouraged
It was also disclosed that the Federal government would promote the adoption of blockchain technology. In a draft by NITIAayog , the government’s think tank, Blockchain technology is considered as a merging transformative force to lead in various aspects of the government sector and private sector operations. It was also mentioned that the potential of blockchain technology has been recognized globally. The part 1 of the draft discussion paper named ‘Blockchain: The India Strategy released in January 2020’, by the national institute of transforming India, mentioning the government’s strategies towards enabling ease of business, living, and governance.