According to reports, the Indian Reserve Bank (RBI) is actively working with the government to regulate cryptocurrencies. Unfortunately, their plans will not satisfy the digital asset backers there.
Indian authorities are getting ready to ban cryptocurrency trading. On this matter, consultations have started between the Ministry of Electronics and Information Technology, the Ministry of Law and Justice and the Indian Reserve Bank.
“When Parliament resumes its session, we hope the bill will be passed.”
One of the officials said.
The official said the government was considering banning cryptocurrencies through legislative changes as it would clearly define the illegality of digital asset trading. Parliament is expected to meet again in late August or early September.
Currently, the law allows trade in cyberspace assets
Earlier in March, the Indian Supreme Court lifted the general RBI ban imposed on banks wishing to enter the cryptocurrency industry. The lifting of this ban led to a boom in stock markets across the country.
However, government officials spread the idea of enacting a new law that would replace the Indian Reserve Bank ban and prevent cryptocurrency trading in India.
Ashish Singhal, founder and CEO of the Indian cryptocurrency exchange called CoinSwitch, said the chance of a digital asset ban is much smaller than last year. The reason for this is that the awareness and knowledge of the Indian public in the field of cryptocurrencies is much greater.
There is no shortage of cryptocurrency enthusiasts in India
After the ban imposed by the RBI was lifted, in the first quarter of this year, the Indian CoinDCX exchange community increased tenfold. The WazirX trading platform also recorded an increase compared to the previous month by more than 80%. The American crypto exchange Coinbase entered the Indian market, offering its trading services since April.
Moneycontrol, an Indian online business news service, has confirmed that millions of dollars in cryptocurrencies are traded in India every week.
Movement restrictions are still imposed on many regions of India due to the COVID-19 pandemic. In March, when these restrictions were introduced, cryptocurrency exchanges reported high returns as some investors decided to move away from traditional assets due to the impending global crisis.