India Could Introduce A Complete Crypto Ban As per the Recently Circulated Draft Bill
Last week on Thursday, April 25, India’s financial publication The Economic Times reported that a new draft bill is recently been circulated which can bring a complete ban on cryptocurrency-related operations in the country.
It means that if the draft bill becomes a law, any sort of crypto trading, and related activities, shall be completely prohibited. It could further lead to the closure of all exchange operations currently functional in India.
An official familiar with the matter told the new publication that the Indian government has already started its inter-ministerial consultations for “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019”.
The committee members deciding on this matter include the Central Board of Direct Taxes (CBDT), the Department of Economic Affairs (DEA), the Investor Education and Protection Fund Authority (IEPFA), and the Central Board of Indirect Taxes and Customs (CBIC). The committee together has collectively decided to introduce a complete ban on the “sale, purchase and issuance of all types of cryptocurrency.”
The report further suggests that the committee is likely to consider an provision to ban cryptocurrencies under the Prevention of Money Laundering Act (PMLA) since they have been used several times in the past for money laundering activities.
India’s Ministry of Corporate Affairs has also stated that digital currencies are used to defraud gullible investors through fraudulent schemes. Over the last year in 2018, there have been several reports of India planning to regulate the digital currency market.
In November 2018, the Supreme Court of India gave clear guidelines to the government to come up with its decision on regulating the crypto market. In a counter affidavit, the government said: “Serious efforts are going on for preparation of the draft report and the draft bill on virtual currencies, use of distributed ledger technology in (the) financial system and framework for digital currency in India.”
But it seems like there is little to no progress on the part of the Indian government, and all of sudden, a new proposal to introduce a complete ban on digital currencies floats out of nowhere.