An official from the Indian government has recently said that two ministries and the reserve bank of India are working closely on a legal framework in order to make cryptocurrencies in the nation banned. According to a report published earlier this week, authorities in the country are making preparations to pass a law that would ban trading of any cryptocurrencies.
The official said that once Parliament resumes for the session, they are hoping to get the law ratified with Parliament expecting to reconvene in late August or early next month.
On top of this, the official said that the government was considering a legislative change to ban crypto instead of methods like a blanket ban from the reserve bank for institutions to deal with companies related to the industry. This is because it will be not binding and would clearly define the legality of the trade according to the official.
The previous blanket ban was struck down by the Supreme Court of India early this year in March. This ban had been imposed by the bank since July 2018 with the repeal leading to a boom on many new platforms all across the nation.
Moneycontrol has said that millions of dollars worth of business in cryptocurrencies are being performed on a weekly basis. Even with the pandemic of coronavirus, they are still pushing up the volumes.
The company further said:
“A growing number of investors have found refuge in virtual currencies as traditional assets have taken a beating over worries about the health of the economy battered by the coronavirus outbreak.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!