The Economic Times, Indian daily newspaper, has published an article titled ‘’with a law, India plans lasting ban on crypto,’’ cited one unnamed senior government official who told daily. As reported, Indian lawmakers were planning on slapping a new ban on crypto companies where the mother court of the country turned down a disciplinary banking ban from the Reserve Bank of India. A note has been moved for inter-ministerial consultations but on what information the note was based on is unknown.
The government can rely on a previous government draft law as per the indication of the article.
The report was allegedly published by a government panel recognizing blockchain technology to be an important new and innovative technology and the use of cryptocurrencies are increasing at an alarming rate. Saying crypto assets carry no intrinsic value, the report concludes the committee has recommended a law banning the cryptocurrencies in India.
CEO of WazirX, Nischal Shetty, said it is yet know whether the report talks about a ban or whether it talks about just moving forward with regulation. Shetty’s belief is that Finance Ministry is thinking about the next regulation step.
Shetty has seen positivity among government officials as he met some of them. He said the lifting of the RBI ban has made this a priority for officials.
Indicating to lack of clarity, a spokesperson from CoinSwitch echoed the same opinion of Shetty. Co-founder of CoinDCX said reconsidering past bills is likely part of the process of forming clearer regulations around the use of cryptocurrencies within India. He also indicated to the growth in user adoption after the ban was uplifted. Exchanges are also getting increased at an alarming number. There is an active crypto-related trade body within the Internet and Mobile Association in India which helped challenge the RBI ban and some existing industry players are taking preparation to starting more formal dialogues with officials. WazirX is reportedly trying to create a self-regulatory framework.