Jun 13, 2020 02:30 UTC
Jun 13, 2020 at 02:30 UTC
Cryptocurrency Ban In India Is On The Agenda Once Again
On Friday, The Economic Times of India reported that the nation’s Finance Ministry has sent a note calling for extra inter-ministerial consultation on a potential cryptocurrency ban. The Supreme Court lifted the Reserve Bank of India’s 2018 ban, which seriously constrained banking facilities for cryptocurrency businesses.
Following the inter-ministerial consultations, India’s cabinet will probably discuss the issue before moving the matter to the floor of the parliament. A past inter-ministerial committee recommended a blanket ban, with related fines and jail sentences for individuals participating in cryptocurrency transactions.
While the news has purportedly created a ruckus, it’s imperative to take note of that a solid decision is yet to rise. Addressing local cryptocurrency media source Coin Crunch, Tanvi Ratna, CEO of blockchain consultancy firm Policy 4.0, commented –
“It is simply a Government file used to invite other ministries for discussion. This move is not unexpected or out of the blue. This was the expected course of action after the Finance Ministry had launched their report in Feb 2019 recommending a ban on cryptocurrencies.”
Clarity of Cryptocurrency Is Not Yet In Sight
Earlier the Supreme Court reversed the RBI ban, cryptocurrency trading in India was done basically through peer-to-peer (P2P) channels. A few cryptocurrency exchanges, such as Zebpay, needed to leave the nation because of an absence of banking support and an intense regulatory environment made by the RBI.
In spite of the high-court controlling, a few platforms are as yet unfit to make sure about banking services. As recently detailed in May, the RBI explained that it was not prohibiting banks from serving digital currency exchanges.
The Finance Minister’s comments are to some degree confounding thinking about that Indian government, like China, is betting big about blockchain technology.
From training to voting and even solar energy trading, state authorities are supporting blockchain-based pilots. They plan to use the novel technology in a few business forms.