India Crypto Ban: Regulators Are Considering Cryptocurrency Prohibition

A lot of best cryptocurrency news sites have been sharing the rumors about a possible India crypto ban which will see the country’s regulators prohibiting cryptocurrencies and their total use. According to the rumors, an outright ban on cryptocurrency in India has been circulating among various departments within the Indian government.

First reported by the local media outlet The Economic Times, the news show that the government has begun the inter-ministerial consultations on a draft bill named “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019.”

The first step in this India crypto ban initiative was the set up of a committee that consists 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) as some of the names which are in line with the idea of “completely banning the sale, purchase and issuance of all types of cryptocurrency.”

The committee, according to the news, is also considering an option to ban digital currency under the Prevention of Money Laundering Act (PMLA) mostly because of its ties to money laundering. The India crypto ban was also a topic of the Ministry of Corporate Affairs which stated that cryptocurrencies are used in fraudulent schemes to “defraud gullible investors.”

Opposite to reports from December, the latest cryptocurrency news show this Economic Times report which stated that different governmental committee suggested that cryptocurrencies should be legalized in the country, stressing that there is a general consensus that cryptocurrency can’t be dismissed as completely illegal.

Before this, the India crypto ban was primarily ruled by the Supreme Court of India, which in February granted four weeks to Indian authorities to come up with some crypto regulation policies before it would stop hearing crypto-related cases such as parties who demand to reverse the crypto circular released by the Reserve Bank of India.

In line with this India crypto ban initiative, that same month a panel that was led by the Indian Economic Affairs Secretary showed a report which raised concerns about the impact of cryptocurrencies on local flat currency in the case where crypto was adopted for payments.