A committee under the Indian Jurisdiction has drafted a bill - “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019” which targets to ban cryptocurrency transactions within the whole country.
A draft bill that would immediately ban cryptocurrency is reportedly circulating among various portfolios of the Indian government, local media Economic times reported on April 25.
According to the reports, an official familiar with the issue shared to Economic times, the Indian government has started discussions at inter-ministerial level to ban “Cryptocurrencies and Regulation of Official Digital Currencies.”
Reportedly, a committee consisting of the Central Board of Indirect Taxes and Customs (CBIC), the Central Board of Direct Taxes (CBDT), Department of Economic Affairs (DEA) and the Investor Education and Protection Fund Authority (IEPFA), among others, has encouraged and backed the idea to entirely ban the “sale, purchase and issuance of all types of cryptocurrency.”
According to the report, the committee is also taking into account an option to ban cryptocurrency under the Prevention of Money Laundering Act [PMLA] since it could allegedly be used for money laundering. Also, reportedly the Ministry of Corporate Affairs stated that cryptocurrencies are utilized in illegal projects and activities to “defraud gullible investors”.
The recent report by the Economic Times stands contrary to the reports from December which that the Indian Jurisdiction advised that cryptocurrencies should be made legal in India. It highlighted that there is a general agreement that cryptocurrency cannot be dismissed as illegal completely.
In February 2019, the Supreme Court of India permitted four weeks to Indian lawmakers to come up with cryptocurrency regulation policies before the Supreme Court of India would end the hearing of crypto-related cases.
By the end of March CoinMarketFeed reported, the largest series of blockchain rallies is set for Bangalore on March 30 and is expected to be bringing a huge impact because of the participation of numerous developers. The rallies that took place this month in Delhi, Mumbai and Hyderabad witnessed huge mass of crypto and blockchain enthusiasts and investors and stakeholder firms.
The RBI ban came into effect on July 5 last year. Following the ban financial institutions were asked to stop dealing with cryptocurrency businesses. Since then the government of India and India’s Supreme Court debated about the issue. In the coming weeks Supreme Court is set for a final hearing on the issue and decision in the weeks following the meeting.
Before the declaration of a decision from the final hearing, Indians brought the issue to the streets of major cities in India.