It looks like India and cryptocurrencies are making their way to “newspaper covers” again. This time, India wants to use its old methods and ban cryptocurrency trading.
India wants to ban cryptocurrency trading
India seems to have attempted this path before. While cryptocurrency trading itself has never been banned within the country, India passed a law that prevented all banks and financial institutions from doing business with companies and businesses that had anything to do with crypto. If a company was involved in trading digital assets, the bank could not offer any financial services.
About two years after this law was introduced, the Indian Supreme Court declared it unconstitutional. It has been removed from the country’s legal books, and boom! India pushed forwards as one of the world’s industry leaders.
Now, however, the country is moving in a completely new (and even more restrictive) direction. This time, the goal is not just to stop banks and financial firms from offering services to cryptocurrency businesses. Now India wants to ban cryptocurrency trading altogether.
Instead of banning, it’s better to regulate
India does not seem to understand that cryptocurrencies, whether they like it or not, need to be regulated meaningfully. The idea of digital money has become so deeply entrenched in modern society that banks can even offer cryptocurrency fiduciary services. If a country goes far enough to ban cryptocurrency trading altogether, it will sadly lag behind most countries.
Several other Asian countries have decided to regulate the market rather than banning it completely. They probably concluded that no matter what the rules and regulations are, people will always find a way to get around the restrictions. They will always find a way to buy BTC, ETH or other cryptocurrencies, so prohibiting them is pointless.
Instead of introducing bans, a better way is to allow trade, but in a safe way. If theft becomes a serious problem, regulators must develop laws to block fraudulent methods. Instead, however, India is moving in a very ancient direction. While they promote blockchain technology, they are clearly not advocates of digital assets and are trying to ban them entirely.
A draft bill proposing a ban will first be discussed by the federal government before it goes to parliament to perpetuate the decision.