Government official updates progress on Indian cryptocurrency law – Bitcoin regulation news
A government official reportedly confirmed that a “note” regarding the legal framework for cryptocurrency in India had been forwarded to relevant ministries for inter-ministerial discussions. It would then be presented to cabinet for approval.
Status of the Indian Crypto Bill
India’s cryptocurrency bill is back in the limelight on Tuesday after Moneycontrol reported a “note” to “ban cryptocurrency trading,” citing an anonymous 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 which “will officially end cryptocurrency trading in India,” the post said.
“We have sent a note to the ministries concerned for interministerial discussions … We are working on it”, he added, specifying:
After interministerial consultations, it (the note) would be presented to the cabinet for approval. Once Parliament resumes for the session, we hope to get it ratified.
âThe government thought that its ban by law would be more restrictive. This will clearly define the illegality of the trade, âthe government official said.
This is not the first time that the media has reported that the Indian government has considered banning the cryptocurrency, nor is it the first time that such a note has been discussed. In June, the Economic Times reported that “India is seeking to introduce a law to ban cryptocurrencies” based on a note that “has been moved (by the Ministry of Finance) for inter-ministerial consultation” .
However, the executives of the cryptocurrency exchange told news.Bitcoin.com that a blanket ban is unlikely given that much has developed since the crypto bill was submitted to the Ministry of Finance early last year. The bill was drafted by the inter-ministerial committee headed by former Secretary of Finance and Department of Economic Affairs (DEA), Subhash Chandra Garg, who has now retired from government. He recently said that cryptocurrencies can be regulated like commodities. Executives said Indians are generally not put off by the news of the crypto ban as they wait for the government to make an official announcement.
Additionally, a recent DEA response to a Right to Information (RTI) request suggests that the government is not entirely satisfied with the existing bill. Crypto Kanoon lawyer Mohammed Danish explained that âIf the govt. decides to pass a law banning crypto, this law can be challenged by crypto companies, traders or enthusiasts based on various rights they have under the Constitution. “
Meanwhile, India’s cryptocurrency industry has grown dramatically since the Supreme Court overturned the central bank circular that banned banks from providing services to crypto companies. Local crypto exchanges have reported up to 10 times the growth in transaction volume and a significant increase in the number of registrations.
Do you think India is going to ban crypto? Let us know in the comments section below.
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