India Proposes New Law To Ban All Private Cryptocurrenices

India proposes new law to ban all private cryptocurrencies in the new chapter of fighting between crypto enthusiasts and the Indian government as we can see in our latest cryptocurrency news.

The new law could prohibit any private cryptocurrency if it gets approved. India proposes new law as it resumed its efforts to ban crypto after the long political and legal battle. The latest moves come from the government as it revealed a bill that could put all crypto activity away. The “cryptocurrency and regulation of official digital currency bill” wants to ban private cryptocurrencies that are not issued by the state. This path could serve a severe blow to the country’s growing crypto industry.

It’s important to note that several crypto exchanges and other crypto-related businesses gained became legitimate after a court ruling declared that cryptos were legal. The court ordered the country’s Central Bank to retraced measures affecting crypto as long as they are not framed as criminal conduct. The regulatory framework is prohibiting the use of crypto and it seems that the next logical step is what will overturn the court ruling. If this initiative goes on, the entire industry will be illegal as the law comes into force.

The Indian lawmakers are seeking just that. According to official sources, the goal of the law clear and has no room left for other interpretations. In order for a digital currency to be issued, the Reserve Bank of India has to do it so all private cryptocurrencies will be prohibited which will allow for certain exceptions for promoting the technology. The issuance of the RBI-controlled CBDC is one of the exceptions to the rule because the government was already exploring the idea of a Digital Rupee for the past few years but it was always cautious when talking about progress or the current status of the project.

Back in 2019, Governor Shaktikanta Das said that it’s too early to speak on the legal progress of the coins because this stance is crucial for India’s regulatory framework:

 “Some discussions are going on. Technology has not yet fully evolved. It is still in very incipient stage of discussions and the RBI we have examined it internally.”

The news wasn’t welcomed in the crypto space as Sumit Gupta, the co-founder of COINDCX said that the government has to clarify what it considers to be a privacy and public crypto because BTC tends to be considered a public cryptocurrency because it is not controlled by a centralized entity.