India intends to completely ban cryptocurrencies as reported by The Economic Times, citing a senior government source.
In March, the Indian Supreme Court overturned a Reserve Bank ruling that prohibited financial institutions from servicing cryptocurrency companies. Despite the legal “thaw,” the Ministry of Finance has issued a notice for inter-agency consultations, which contains a proposal to ban digital assets.
According to the sources, the proposal may be submitted to parliament after internal departmental discussions.
A year ago, a government commission drafted a bill banning cryptocurrencies. It was proposed to implement fines up to $ 330,000 and prison sentences of up to 10 years for its usage.
Leading participants in the Indian cryptocurrency industry have expressed doubts that the new initiative will be so categorical. Nishal Shetty, CEO of one of the country’s largest bitcoin exchanges WazirX, urged not to succumb to panic. He believes that the country’s prime minister will not “slow down the explosive sector.”
Yet another FUD is here. Few things to note:
1. Its just a note
2. Committee will need to be formed
3. Draft needed
4. Industry consultations
5. Parliamentary approval
— Nischal (WazirX) ⚡️ (@NischalShetty) June 12, 2020
The lifting of the ban on banking services had a positive effect on the cryptocurrency industry in India. The largest exchange, CoinDCX, reported that since March, their trading volumes have grown by 47%, and the number of active users by 150%.