CRYPTO BAN??

India’s crypto currency bill is back in the limelight on Sept 15, after Indian government plans to introduce a new law to ban trade in crypto currencies. The bill is yet to be discussed by the federal cabinet before it is sent to parliament.

The Indian government has been holding consultations with the law ministry, the ministry of information and technology, and the Reserve Bank of India (RBI) on a framework for a law that will “formally end trading in crypto currency in India,” the anonymous sources conveyed.

In 2018, Reserve Bank of India banned crypto transactions after a string of frauds. Crypto currency exchanges, traders responded with a lawsuit in the Supreme Court in September and the same was quashed by the apex court on March 2020.

Meanwhile in 2019 The Department of Economic Affairs had proposed a draft bill called the ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’. The intention behind the ban was to use of all private crypto but also suggests a block chain based central bank digital currency.

Is trading in crytocurrencies illegal in India?

Dealing with crypto is not illegal but our government has not made the necessary regulatory framework to protect the rights of such holders. Bitcoin or any other cryptocurrency buying, selling, trading, or mining is not illegal by any law in India.

Worldwide the use of cryptos as currency has been approved be it Japan, Germany or the US they all have treated crypto as an asset. As cryptos encourage greater financial inclusion as crypto wallets replace bank accounts, Instead of banning, India needs a regulatory framework to which they need to analyse the benefits and risks arising out of cryptos to adopt a meaningful regulation

The article in itself states to be sceptical of the status of Indian Crypto Bill. No former announcements as such, has been made yet. If at all the government decides to pass a law banning crypto, this law can be challenged by crypto business, traders, or enthusiasts based on various rights available to them under the Constitution of India. As the ban could affect more than 1.7 million Indians trading in digital assets and a rising number of companies setting up platforms for the trade, data shows.

Credit: Vinita shetty