The Indian Government works on creating a new crypto regulatory framework that will end up banning crypto overall. Five months after they lifted the ban on digital assets, one official said that they are considering a new law so let’s find out more in the upcoming crypto news today.
One Indian official claimed that two ministries along with the Reserve Bank of India are working on a legal framework to ban cryptocurrencies. According to the reports, the Indian government works on a regulatory framework to ban crypto trading. The site quoted an anonymous official saying that the consultations between the Ministry of Electronics and Information Technology as well as the Ministry of Law and Justice and the Reserve Bank of India started regarding the framework of such a law:
“Once Parliament resumes for the session, we are hoping to get [the law] ratified. Parliament is expected to reconvene in late August or early September. The official stated that the government was considering banning crypto through legislative change — rather than methods such as the blanket ban from the RBI for banks dealing with crypto firms — because it would be more binding. “It will clearly define the illegality of the trade.”
The Supreme Court of India has previously struck down a blanket ban on the banks that are dealing with crypto businesses which were imposed by the RBI since 2018. The repeal led to a boom in new exchanges across the country. However, the government officials have been floating the idea of launching a new law not allowing cryptocurrencies in the country in place of the RBI ban.
Ashish Singhal the founder and CEO of the Indian crypto exchange CoinSwitch, said that the changes that the government will impose a blanket ban on crypto were more likely in 2019 than this year. He said that there was a huge change in the way crypto is seen across India and this is hope for the better. Many parts of India are still facing some restrictions on the movement because of the coronavirus pandemic since the lockdown in March but exchanges are showing strong growth as some of the investors are moving away from traditional assets.
The India-based exchange CoinDCX had ten times the average number of users signing up in the week after the ban was lifted with a 47% growth for Q1 this year. The trading platform WazirX recorded a monthly growth as well of over 80% in March and April. The United States-based exchange Coinbase entered the Indian market and offered crypto-to-crypto conversions from April.
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