Today, Tuesday, August 4, 2020, another cryptocurrency news came out of India as information from the country says cryptocurrency bill has been forwarded to the relevant ministry to look into the legal framework.
It’s unknown if the legal framework would be in favour of cryptocurrency trading or place a total ban on it in India.
It was gathered that the bill has been forwarded to related ministries for inter-ministerial discussions before it would be tabled before cabinet for approval.
Status of Indian Crypto Bill
According to Moneycontrol, 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,”.
“We have forwarded a note to related ministries for inter-ministerial discussions … We are working on it,”.
A government official was quoted as saying that “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,”.
Recall that 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.”
If the cryptocurrencies can be regulated as commodities, it would be good news for cryptocurrency traders in India
What happens if India places a total ban on cryptocurrency?
Their are indications that cryptocurrency investors and owners of exchanges might drag India’s government to court if it decides to ban crypto in the country.
A lawyer Mohammed Danish of Crypto Kanoon explained that “If 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,” news.bitcoin quoted him as saying
Growth of cryptocurrency industry in India
The cryptocurrency industry in India has been growing exponentially in the recent time since the country’s apex court quashed the circular by the central bank that banned banks from providing services to crypto businesses.
It’s gathered that local crypto exchanges have been reporting as much as 10x trading volume growth and a significant increase in the number of signups in the past few months.