- by Stocktry Expert
- 09th Aug 2020
Will Bitcoin be banned in India? Current status of the new law
A report by Moneycontrol confirms the return of illegal trading for Bitcoin (BTC) in India. The representative confirmed that a note has already been delivered to the ministers associated with it. Apart from that the representative of the Government of India also confirmed that prior consultations have taken place between the Ministry of Information, Finance, and other related ministries along with the Central Bank of India (Reserve Bank of India, RBI).
The main focus of the discussions is to create a legal framework that will ban trading with Bitcoin, Ethereum, XRP, and any other cryptocurrency.
Although the representative of the government of India said “We are working on it. After inter-ministerial consultations, it (the note) would be presented to the cabinet for approval. Once Parliament resumes for the session, we are hoping to get it ratified.”
However, It is necessary to wait and see how things develop. A possible ban on Bitcoin (BTC) has been reported in the past. However, there has been speculation about the feasibility of re-introducing a new law to prohibit trade in cryptocurrencies. Since then, the market has changed.
According to the Crypto Kanoon platform, co-founded by Mohammed Danish, a ban will bring brain drain, increased untraceable transactions, increased risk of money laundering, benefits for foreign companies that will receive money from Indian investors, loss of tax revenues. Danish added:
“If the govt. decides to pass a law banning crypto, this law can be challenged by crypto business, traders, or enthusiasts based on various rights available to them under the Constitution.”