India Considering a Blanket Ban on Cryptocurrencies?

By Sumedha Bose

It looks like digital currencies are headed towards a complete ban in India. Allegedly, the government is currently looking into a draft bill, that would completely ban cryptocurrency.

This idea of implementing a ban on crypto was coined by a committee consisting of the Department of Economic Affairs (DEA), the Central Board of Direct Taxes (CBDT), the Central Board of Indirect Taxes and Customs (CBIC) and the Investor Education and Protection Fund Authority (IEPFA), among others.

They have suggested that it would be in the country’s best interest, to impose a blanket ban over cryptocurrency. That would render a ban on the “sale, purchase and issuance of all types of cryptocurrency.”

According to insider sources, inter-ministerial consultations have begun on the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″ draft bill. It is currently under consideration by senior ministers.

The ban on digital currency can also be undertaken by the committee, under the Prevention of Money Laundering Act (PMLA), due to the propensity of crypto to be used in cases of money laundering. Previously we had heard that the government is actually planning to bring out regulation policies regarding crypto, and that they were setting up a committee for that very purpose.

However, this new development looks like it could derail the crypto industry in India. There is still some trepidation over the idea of cryptocurrency, and most experts believe that it cannot be made completely illegal in India. The government in this case needs to look into the deeper implications of such a drastic step.

We had previously also reported that there was No Place For Cryptocurrencies In India’s Fintech Sandbox Framework. The exclusion of crypto from all mainstream financial developments is quite evident in the country.

Sumedha Bose

Sumedha uses words as her crutch to get by in life. She takes a keen interest in debating, dancing and destroying the patriarchy in her free time. She can be contacted at [email protected].

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