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India Government Mulls New Law to Ban Cryptocurrencies

India Government Mulls New Law to Ban Cryptocurrencies
  • India plans to introduce new laws to ban private cryptocurrencies.
  • The draft legislation makes no mention of a jail sentence.
  • The government’s current plan is not warmly welcomed by cryptocurrency enthusiasts.
  • Meanwhile, Bitcoin’s price triggered by a “#bitcoin” tag on Elon Musk’s Twitter profile.

India is planning to introduce new laws to ban private cryptocurrencies. Also, it will set up a system for official crypto to be issued as its central bank digital currency (CBDC).

As per the official source,

The Bill also seeks to prohibit all private digital currencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.

Crypto ban not welcomed by enthusiasts

India’s plan on crypto ban could deal a severe blow to the country’s growing crypto industry.  In fact, after the Reserve Bank of India’s (RBI’s) ban on crypto trading, many crypto startup firms operate in a grey area. Firms include CoinSwitch, Kuber, BuyUCoing, WazirX, CoinDCX, Giotuss, and others.

Also, in March 2020, the Supreme Court lifted the ban on crypto, reversing the earlier order. More so, the apex court rule came after two years since the ban, which took place in April 2018.

In addition, this month’s draft may not be as harsh as the one made last June. A panel proposed a 10-year prison term for crypto traders. However, this draft bill makes no mention of a jail term.

Also, several crypto exchanges and other crypto-based firms gained legitimacy. This was after a court ruling declared digital currencies legal. Furthermore, crypto fans did not warmly receive the government’s current plan.

WazirX Founder Nischal Shetty mentioned in a tweet,

Shetty added that there’s a chance that the parliament will receive a new digital currency bill to review. He also believes that this will help the RBI to create its own CBDC. And ban private digital currencies with some exceptions.

COINDCX Co-Founder Sumit Gupta also said that the government should explain what private and public digital currencies are. Bitcoin tends to be seen as a global public digital currency since it does not have a central entity to control and regulate it.

Meanwhile, on Friday, Bitcoin’s price was triggered by a “#bitcoin” tag on Elon Musk’s Twitter profile. As a result, the BTC price had risen up to $33,803, at the time of writing.

Crypto trading has enticed Ananthi Reeta to write for CoinQuora. She consistently contributes news and feature articles. She has covered several different blockchain and crypto niches, especially altcoins.