Indian government officials appear to be planning to discuss a new law the legal framework of which would completely ban cryptocurrencies in the subcontinent.
According to the news of September 15th Bloomberg, The Indian federal cabinet is considering a law banning cryptocurrencies six months after the courts lifted a general ban. Anonymous sources assured this The Indian government is promoting the development of blockchain technology, but not the trading of cryptocurrencies.
In response, Brad Garlinghouse, CEO of Ripple rated said decision as “disappointing”, to say that Cryptocurrencies had the potential to help the country’s underserved population:
Disappointing to see India freaking out on crypto and hampering an emerging industry that could serve one of the largest populations of citizens with no or no bank account. https://t.co/ffMUIQOnA7
– Brad Garlinghouse (@bgarlinghouse) September 16, 2020
In May, In India there were approximately 190 million unbanked adults who did not have access to a bank account or other financial instruments. Some experts have said so Crypto assets like Bitcoin (BTC) are one way to develop financial literacy with simple tools for investing and saving.
Before he The Reserve Bank of India (RBI) imposed a blanket ban on banks dealing with crypto companies in 2018. The country’s cryptocurrency market was valued at $ 12.9 billion. The Supreme Court put down RBI policies in March, which led to it to a boom in new stock exchanges on the subcontinent. A May report from OKEx and Coinpaprika crypto exchanges, The former saw site traffic from India grow 545.56% in the first quarter after the ban was lifted, and the number of new users also rose 4.100%.
However, News has been circulating since June that Indian government officials are considering a new law that could ban cryptocurrencies. In contrast to RBI’s approach of essentially blacklisting banks, The government might now consider banning cryptocurrencies through a change in the law that it claims would be stricter.
The Indian parliament convened again on Monday after being delayed due to the pandemic. Tanvi Ratna, CEO of the consulting firm Blockchain, Policy 4.0, explained Until September 13th, the list of bills to be dealt with did not include a cryptocurrency ban law as long as the government agency is in session for 18 days.
Ashish Singhal, founder and CEO of Indian cryptocurrency exchange CoinSwitch, said in June that a complete ban on digital currencies was more likely last year than it would be in 2020. He said the way cryptocurrencies are perceived across India has changed. I hope it’s for the better