Media: India plans to ban cryptocurrency trading

India’s authorities are preparing to tighten cryptocurrency regulation. The issue is being worked on by the central bank and two ministries, according to a Moneycontrol report in government circles.

The bill will be presented to Parliament in August–early September. If enacted, cryptocurrencies would be banned.

“We hope the law will be passed as soon as Parliament resumes its work,” said an official.

Earlier this year the Supreme Court overturned the RBI order that barred financial institutions from servicing crypto companies. An official noted that the new ban would be more carefully considered.

“There is a view in the government that prohibitive measures through law would be more binding. It would clearly define the illegality of trading,” he added.

The RBI imposed the ban on servicing cryptocurrency companies in April 2018. Since its reversal, the country’s largest exchange CoinDCX said that since March its trading volumes have risen by 47%, and the number of active users by 150%.

Media reported in mid-June about plans to ban cryptocurrencies. At that time industry participants expressed doubt that the initiative would be so sweeping.

Last July, a government-appointed working group also proposed a full ban on the use of cryptocurrencies, with penalties of up to $330,000 and prison terms of up to 10 years.

Subscribe to ForkLog’s channel on YouTube!