A report from Moneycontrol appears to confirm the return of illegal bitcoin (BTC) trading in India
. The report cited an Indian government representative but did not identify him. The representative confirmed that a note had been sent to the ministries concerned for "internal discussions". In addition, representatives of the Indian government confirmed that the Ministry of Information, The Ministry of Finance and other relevant departments had held prior consultations with the Reserve Bank of India (RBI). A representative of the Indian government has confirmed that the debate over the legality of Bitcoin and cryptocurrencies will resume. Ministries and the presidential cabinet will have to approve a document on the legal framework for cryptocurrencies to ban their transactions.
Although the representative of the
government of India did not specify when a measure for banning trade in
cryptocurrencies could be implemented, he confirmed that the government will
seek to open the discussion in parliament when it resumes activities. The
representative of India stated:
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.
The aim of the discussions is to create a
legal framework that will definitively ban trading with Bitcoin, Ethereum, XRP
and any other cryptocurrency. According to the representative of the Government
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. We have forwarded a note to related ministries for inter-ministerial discussions.
However, It is necessary to wait and see
how things develop. A possible ban on Bitcoin (BTC) has been reported in the
past. Also a similar note has even been reported in recent months, but the
discussion does not seem to find room in India. In a note from another media
outlet in June, it was confirmed that India has spent months preparing a
possible ban on trade for cryptocurrencies. At least since that time, the
Indian government has been in internal consultations.
However, there has been speculation about
the feasibility of re-introducing a new law to prohibit trade in
cryptocurrencies. As reported by CNF, India has had a ban on Bitcoin trading
since 2018. Imposed on the basis of a ban by the Reserve Bank of India (RBI),
the ban was lifted in March this year. At that time, expectations were positive
as the market opened up to receive 1.2 billion people in India.
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.
Author : Reynaldo