Indian policymakers are discussing a new law to permanently ban the trade of Bitcoin and other cryptocurrencies in the nation, reported Moneycontrol on Tuesday.
Ban Bitcoin, Once Again
The Indian cryptocurrency market cannot seem to catch a break. Its government has gone back-and-forth on cryptocurrencies at least five times yet, and it does not seem to be stopping any time soon.
Just yesterday, a report stated lawmakers are reading their latest ban on cryptocurrency trade in the emerging economy, even as local trade volumes for Bitcoin have increased significantly in recent months.
Sources told Moneycontrol the government is planning to bring crypto trading to a halt in the country – a move that forces the closure of the booming market during the lockdown.
An official told under the condition of anonymity:
“There was a view in the government that banning it through law would be more binding. It will clearly define the illegality of the trade. We have forwarded a note to related ministries for inter-ministerial discussions.”
The official revealed the government was already holding consultations with the law ministry, ministry of information and technology, and the RBI for a framework of a law that will formally end trading in cryptocurrency in India.
Once passed, the law would be presented to the cabinet for approval. The latter is expected once the Parliament resumes for the session.
Local Crypto Scene Unfazed
Despite the news, local cryptocurrency entrepreneurs remain unfazed. In fact, Nischal Shetty of crypto exchange WazirX even suggested that buying cryptocurrencies during times of “FUD” has historically proven to be a good sign:
As BTCManager earlier reported, the Supreme Court had in March 2020 set aside a Reserve Bank of India’s circular that prohibited banks and financial institutions from providing services related to cryptocurrencies. It said citizens had the right to create a new industry of cryptocurrencies and exchanges along with the fundamental right to trade.
Corporate firms have already jumped on the crypto bandwagon too. Last month, TCS, one of India’s largest IT consulting firms, said it was launching a crypto trading unit soon, one that would allow citizens with exposure to Bitcoin and other cryptos.
Besides, blockchain technology remains a huge part of the narrative. Prime Minister Narendra Modi said earlier this year the technology will see billions in capital inflow from the private space as they realize its potential.