Indian Government Shares Update on the Controversial Crypto Law

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Indian government ready to proceed with Bitcoin banBack in June, the Indian government proposed a legal framework for Bitcoin and cryptocurrencies that spelt bad news for crypto fans. While earlier rumors that the Asian country is banning cryptos have been shut down, the proposed new law stated that the country is looking to ban cryptocurrencies for good.

Since the Supreme Court quashed the circular by the central bank of India that banned crypto services, the Bitcoin industry flourished. Local crypto exchanges saw a 10x growth in trading volume and people have generally been very optimistic about the future of cryptos in India.

However, the Indian government just shared updates on the proposed law and it’s bad news for crypto fans.

The Cryptocurrency Ban is Still on Track

While reports are still unconfirmed, an Indian government official allegedly confirmed that the crypto ban is back on track. The law is expected to be presented to the cabinet for approval soon. Once the Parliament resumes the session, the proposed law will most likely get ratified. This, of course, is bad news for all Indian crypto fans.

Rumors say that the government is set on banning the use of cryptocurrencies through a law. This would make it more binding and define the illegality of the trade. The newest reports are another nail in the coffin for the Indian cryptocurrency market. Former minister Subhash Chandra Carg recently said that cryptos can be regulated as commodities if the government wants to. However, the latest rumors make it clear that the time for Bitcoin and cryptos in India is coming to an end.

Of course, crypto traders, businesses, and enthusiasts are expected to challenge the decision. The crypto market in India has exploded in recent months, opening opportunities for new industries such as Bitcoin online gambling. A lucrative industry in its own right, everything will fall to tatters if the Indian government passes the proposed law.

A Formal End of Crypto Trading Looming

In the past few weeks, the government has been holding talks with the law and information and technology ministries over the framework. The ban is expected to take place pretty soon. In 2017, the Indian government set up a panel by then finance secretary Subhash Carg to look into the ecosystem of cryptocurrencies. The panel proposed a ban on private virtual currencies, but at the same time recommended looking into the possibility of an official virtual currency.

The same panel also suggested fines of up to 25 crores and imprisonment for anyone in India dealing in cryptos. For the past three years, Indian crypto fans have been hoping that it would never come to that. After the government quashed the circular back in March hopes went up, but now it’s becoming pretty clear that the crypto industry in India is doomed.

It’s a real shame that this is set to happen as many investors have found refuge in virtual currencies. Traditional assets have been taking a beating because of the coronavirus COVID-19 pandemic while Bitcoin’s price is still holding up. As things stand now, Indian crypto fans will have to find buyers for their Bitcoins very soon.

August 5, 2020: • No Comments

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