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Indian Government Departments Are Looking Closer Over Proposing A Complete Ban On Cryptocurrency

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The Indian cryptocurrency market is facing a lot of turbulence, with the recent news report about the launch of several inter-ministerial consultations concerning the bill to put a nationwide ban on cryptocurrency.

Progressing on regulating cryptocurrency and speculations in the market, ministry of finance in India confirmed drafting a bill entitled “banning of cryptocurrency and regulations of official digital currencies bill 2019,” which has been circulated among relevant government departments, official sources aware of the details said.

The official further confirmed that all the departments including “ the department of economic affair (DEA), central board of indirect taxes, central board of direct taxes and customs and the investors education and protection fund authority” has favored the bill to ban the “sale, purchase and issuance of all type of cryptocurrency”. The representative departments in the meeting were quoted saying “already there is a lot of delay in taking action against cryptocurrency. There is the urgent need to ban sale purchase and issuance of cryptocurrency.” 

During the meeting, the representative also pointed out that cryptocurrency can be easily used for money laundering in the country and emphasize the importance of putting the complete ban on them under the prevention of money laundering act (PMLA). The department backed their claim against cryptocurrency with the feedback they are giving for the bill proposal.

Meanwhile, in addition of the bill, the anonymous sources also emphasized that as there is a general election to be held in the country, the final bill, based on the feedback “will be proposed to the next government that takes charge after the election at the end of May.” 

With this, it is still unclear what “official digital currencies” refers to, which RBI has researched for launching a digital rupee.

However, this is not the first time media has reported the Indian government outlook against the virtual currency. Earlier Indian central bank RBI has also reported asking entities registered under them, to do not provide services to individuals and enterprises dealing with the cryptocurrency. 

What are your views on the implementation of cryptocurrency regulation in Indian market? Share them in the comment section below.

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