India is contemplating to formulate a law for banning of all cryptocurrencies, a news which could frustrate crypto enthusiasts and investors alike in the country.
The Government of India is reportedly looking to introduce a ban on all types of cryptocurrencies. “a note has been moved (by the Finance Ministry) for further inter-ministerial discussions” as informed by a senior government official to ET.
This sudden move happened due to the Indian Supreme Court’s March 4th judgement annulling the RBI (Reserve Bank of India) April’2018 circular regarding banning of financial institutions from providing services to cryptocurrency related business and activities.
‘The note will be sent to the cabinet after consultations and, subsequently, to parliament’ the news source said.
Previously a Government panel headed by former finance secretary Subhash Garg prepared a report proposing a ban on all forms of private cryptocurrencies. The panel suggested that any direct or indirect use of cryptocurrency will be punishable with a fine or imprisonment!
The fine being Rs. 25 Crore (Rs 250 million/3.3 million USD ) or imprisonment not less than 1 year and up to 10 years.
The government’s concern is understandable due to the fact of the cryptocurrency’s ease of use in money-laundering related criminal activities like Terrorism, arms trafficking, drugs trafficking etc.,
Finally the government will surely have consultation with the concerned stakeholders before enacting any law on the matter as it concerns millions of crypto lovers in India. We all hope for the best!
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News Source:- ET
