India has always been very anti-crypto, with the Reserve Bank of India (RBI) having issued a blanket ban on it before it was repealed by the Supreme Court of the country. Now, the country is aiming to introduce a new law, one dedicated to banning cryptocurrencies. This comes, ironically enough, as a result of the Supreme Court overturning the RBI’s ban, as a legal framework will have far more staying power.
Either Fines Or Prison Time
A report made by Bloomberg detailed how the government is aiming to lean on a bill that had been drafted prior, one that bans all forms of crypto transactions within the country. Anyone caught holding cryptocurrency within India, should this bill be passed, could see a hefty fine, or even up to ten years in prison.
Those that are familiar with the development have informed the press that the bill will first be discussed by the federal cabinet. From there, it should be sent to parliament shortly after.
Trying To Salvage The Situation
As one would imagine, those participating in the crypto space of India have only disappointment to express about it. The India-based crypto community had hoped for regulations, not an outright ban, and are now forced to face how their new market will soon crumble.
This move comes just as the cryptocurrency exchanges of the country are at their infancy. This, in turn, is primarily due to the uncertainties with the regulations. Even so, there are a few local players betting for a global market, even if most of their peers have already shut down their operations. It’s a bold move, trying to survive in such an uncertain time, with those willing to partake in it seeking various options, including derivatives, crypto-to-crypto, and P2P products.
India’s Anti-Crypto History
Here comes some interesting technicalities and stipulations. While neither the government nor the Reserve Bank of India made any restriction regarding P2P transactions, they do forbid the use of crypto altogether.
India’s government has been relentlessly against cryptocurrencies, frequently warning the public at large to refrain from investing in it. The government has likened it to Ponzi schemes, trying to scare people off of the unusually high gains an investor can get at the start.
What will inevitably happen remains to be seen, but it seems that a chapter in India’s history is reaching its close, though with much disappointment from those outside the government.