A government official has reportedly confirmed that a “note” regarding the legal framework for cryptocurrency in India has been
forwarded to related ministries for inter-ministerial discussions. It
would then be presented to the cabinet for approval.
Status of Indian Crypto Bill
India’s
cryptocurrency bill is back in the limelight on Tuesday after
Moneycontrol reported on a “note” that seeks to “ban trade in
cryptocurrency,” citing an unnamed government official. On the condition
of anonymity, the official explained that 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 cryptocurrency in
India,” the publication conveyed.
“We have forwarded a note to
related ministries for inter-ministerial discussions … We are working on
it,” he added, elaborating:
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.
“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,” the government official was quoted as
saying.
This is not the first time the media has reported that the
Indian government is planning to ban cryptocurrency, and it is also not
the first time such a note has been discussed. In June, the Economic
Times reported
that “India is looking to introduce a law to ban cryptocurrencies”
based on a note that “has been moved (by the finance ministry) for
inter-ministerial consultation.”
However, crypto exchange executives told news.Bitcoin.com that a blanket ban is unlikely
considering much has developed since the crypto bill was submitted to
the finance ministry early last year. The bill was drafted by the
inter-ministerial committee headed by former Finance and Department of
Economic Affairs (DEA) Secretary Subhash Chandra Garg, who has now
retired from government. He recently said that cryptocurrencies can be regulated as commodities.
The executives said Indians are generally undeterred by crypto ban news
as they are waiting for the government to make a formal announcement.
In addition, a recent DEA’s reply
to a Right to Information (RTI) application suggested that the
government is not entirely happy with the existing bill. Lawyer Mohammed
Danish of Crypto Kanoon explained that “If the govt. 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.”
Meanwhile, the cryptocurrency industry in India has been growing substantially ever since the supreme court quashed
the circular by the central bank that banned banks from providing
services to crypto businesses. Local crypto exchanges have reported as
much as 10x trading volume growth and a significant increase in the
number of signups.
Do you think India will ban crypto? Let us know in the comments section below.
source link : https://news.bitcoin.com/government-official-updates-progress-indias-cryptocurrency-law/
