Government official reports development of India’s cryptocurrency law. India’s cryptocurrency bill is back in the spotlight on Tuesday after Moneycontrol reported on a “note” that seeks to “ban trade in cryptocurrency,” quoting an unnamed government official.
Choosing to stay anonymous, the official explained that the Indian government has been holding consultations with the law ministry, the ministry of information and technology, and the Reserve Bank of India (RBI) on a framework for a law that will “formally end trading in cryptocurrency in India,” the publication conveyed.
“We have forwarded a note to related ministries for inter-ministerial discussions … We are working on it.” He elaborated that “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.”
“There was a view in the government that banning it through a law would be more binding. It will clearly define the illegality of the trade,” the government official was cited saying.
Lawyer Mohammed Danish of Crypto Kanoon explained that “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.”
Meanwhile, the cryptocurrency industry in India has been growing substantially ever since the supreme court quashed the circular by the central bank that banned banks from providing services to crypto businesses.
Local crypto exchanges have reported as much as 10x trading volume growth and a significant increase in the number of signups.
[image: Raghu Nayyar]