India’s Government Actively Moving For Crypto Ban, Says Official

It’s been five months since the Indian supreme court ruled against the blanket ban on crypto made by the Reserve Bank of India (RBI). Now, however, an official within the country’s government claims that the RBI, as well as two ministries, are actively working towards the development of a legal framework. This framework is planned to ban cryptocurrencies within the subcontinent entirely.

Plans Of Implementing Anti-Crypto Framework

According to a report made by Moneycontrol, an Indian news website, India’s authorities are gearing towards readying a law to be passed that would ban cryptocurrency trading. Moneycontrol quoted an anonymous Indian official when it comes to this matter. This official stated that the Ministry of Law and Justice was in consultations with the RBI and the Ministry of Electronics and Information Technology. These consultations are being done to establish the framework of such a law to be put in place.

The official explained that when Parliament resumes for the session, it’s expected that this law will then be ratified. As it stands now, Parliament is expected to start reconvening anywhere between late August to early September.

Planning For Higher Staying Power Than RBI Ban

The official explained that the government has been considering banning crypto through a change in the legislature. This comes in contrast to its previous attempt at banning, which saw the RBI issue out a blanket ban regarding banks dealing with crypto firms. The official explained that a legislative change would see the ban become more binding, and will clearly define crypto trading’s legality.

It was back in March when the Supreme Court of India struck down the RBI’s blanket ban, which prohibited regulated banks in the country from providing services to crypto firms. This ban has been imposed by the RBI since July of 2018, with its repeal seeing a massive boom in crypto exchanges across the country.

A Change In Public Sentiment

It’s been an ongoing trend, however, that Indian officials have started to float the idea of enacting a new law. This law will see to the banning of cryptocurrencies across India. The idea behind it is that this will give it a higher level of staying power, as opposed to the RBI’s crypto ban.

Ashish Singhal stands as the CEO and founder of the CoinSwitch crypto exchange. According to Singhal, the likelihood of a blanket ban on digital currencies made by the government is relatively less likely now than what it was back in 2019. Singhal explained that cryptocurrencies have experienced an overall perception shift across the country, with hopes of it being for the better.