The Indian government, together with other authorities, is actively working on the legal framework to ban digital currency and its trading; five months after Supreme Court struck down the circular issued by the Reserve Bank of India that prohibits regulated entities to provide services on individuals or businesses under the digital currency trade.
The Indian government is planning to bring in a new law to ban cryptocurrency trading again, following the prohibition of banks and financial services to provide services related to crypto.#India #regulations #crypto #BAN #RBI #Reservebankofindia— Blockchain.News (@BlockchainNewsM) August 5, 2020
This move by the government will have a huge impact on the booming digital market trading industry in India. In a report released by a local news outlet, the higher-ups and three other authorities– the Ministry of Electronics and Information Technology, the Ministry of Law and Justice, and the Reserve Bank of India (RBI) are in the talks to come up with a concrete legislative hold on these plans to ban cryptocurrency trading in the Indian financial market. The person familiar with the discussion shared with the news outlet that the parliament might resume its session late August or early September by then, a new law will be endorsed.
This is not the first time India considered prohibiting cryptocurrency-related activities, in fact in July 2018, Reserve Bank of India issued a blanket ban to entities engaged in trading that headed to a long court battle between the local cryptocurrency exchanges and the central bank. March this year, the Supreme Court overturned the ban favoring the digital assets businesses noting that the citizens had the right to create a new industry that focused on crypto exchanges along with fundamental right to trade; as local traders say, a contributory decision that triggers the rise in the cryptocurrency exchanges across the country.
A group authorized by the Indian government to study the digital asset trading proposed a fine of $3.3 million and a 10-year worth of jail time to anyone caught dealing in them.In a coronavirus-challenged economy, Indian investors found refuge in the increasing volume of virtual currencies as traditional assets continue to suffer. People who work closely with the industry, in their opinion, the government will be losing revenue if it will push through with the ban, what they need to come up is a regulatory mechanism for this new industry.