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According to reports, Indian government officials are planning to discuss a new bill, the legal framework of the bill will prohibit India from trading cryptocurrency.
According to a report by Bloomberg on September 15, the Indian Federal Cabinet is considering enacting a law banning cryptocurrencies. Six months ago, the Indian court lifted a comprehensive ban. An anonymous source said that the Indian government will encourage the development of blockchain technology but discourage cryptocurrency transactions.
Ripple CEO Brad Garlinghouse responded that the decision was “disappointing”, noting that cryptocurrencies have the potential to help underserved people in this country:
Disappointingly, India’s failure in the cryptocurrency market has hindered the development of an emerging industry, and the crypto industry may provide services to groups without bank accounts. -Brad Garlinghouse (bgarlinghouse) September 16, 2020
As of May, about 190 million adults in India have no bank accounts, which means that these adults do not have bank accounts or other financial instruments. Some experts claim that crypto assets like Bitcoin (BTC) are a way to encourage the popularization of financial literacy through simple investment and savings tools.
Before the Reserve Bank of India completely banned banks from engaging in cryptocurrency business in 2018, the country’s crypto market was valued at $12.9 billion. In March of this year, the Supreme Court of India rejected the Reserve Bank of India’s policy, which led to the booming of new exchanges across the Indian subcontinent. Crypto exchanges OKEx and Coinpaprika pointed out in a report in May that after the ban was lifted, OKEx’s website visits increased by 545.56% in the first quarter, and the number of new users also increased by 4100%.
However, since June, there have been reports that Indian government officials are considering a new law that may ban cryptocurrencies. Unlike the Reserve Bank of India’s method of blacklisting banks, the government may now be considering legislative reforms to ban cryptocurrencies, which will reportedly be more binding.
The Indian Parliament reconvened on Monday after being postponed due to the epidemic. However, Tanvi Ratna, CEO of the blockchain consulting company Policy 4.0, said that as of September 13, during the 18-day meeting of government agencies, there was no encryption ban bill.
In June of this year, Ashish Singhal, the founder and CEO of Indian cryptocurrency exchange CoinSwitch, said that compared with 2020, it is more likely to ban digital currencies last year. He said that throughout India, people’s views on cryptocurrencies have changed, and hope the situation will be better.