India is once again facing controversy over banning cryptocurrencies. The government started working to establish a legal system to ban cryptocurrencies. This is due to a much stronger and more effective ban than a circular issued by the Central Bank of India (RBI).
"A proposal has been sent from the Ministry of Finance to the Internal Advisory Board," a senior government official told the press on the matter. said. He also stated that the reason for the submission of the proposal was to cancel the RBI decision of the Supreme Court on March 4, which prohibits banks from buying crypto money from individuals or companies.
Crypto companies worried
The proposal will go to the cabinet after various advisory boards, and then to Parliament. Experts say the process will hit crypto exchanges and other companies, as before.
In July 2019, a draft law that banned all kinds of cryptocurrency and crypto money services was prepared. The bill proposed prison terms and fines if the law was not followed.
In the period when the court lifted the ban order, “We are aware of the power of the RBI to preventive action and we control such a ban rate. In this context, RBI should show us at least whether any damage has been done by the institutions regulated by RBI, but as far as we have learned, there is none so far. "
The upper court later lifted the prohibition of buying and selling Bitcoin and other cryptocurrencies. The abolition of the ban triggered many initiatives positively, and companies wishing to leave the country said they would review these decisions.
“It will blow up the industry”
Despite all this, progress after the decision was not good. Experts say that the banks do not accept payments for India or overseas without getting a definitive response from the RBI, but transactions continue through other channels. A specialist said that the rules in the proposal proposed in 2019 are very harsh, and if the draft becomes legal, it will be impossible to buy, sell and minimize cryptocurrencies and this will ruin the industry. The expert also stated that the government hopes that everyone will listen to this issue and that the bill will not be accepted in its current form.
