New bill to ban crypto in India threatens crypto unicorns

Wednesday 16 September 2020, 9:21 AM AEST - 1 week ago

New bill to ban crypto in India threatens crypto unicornsNew bill to ban crypto in India threatens crypto unicorns 19

The Indian government will discuss a bill to ban crypto in India during the ongoing parliament session. As the lawmakers gather together for the monsoon session of the parliament, the country faces various issues such as GDP downturn, a surge in Coronavirus cases, and border disputes with China. Amid such an important session, crypto does find a mention.

The bill to ban crypto in India, if passed, will put the country opposite to other Asian nations which seem to embrace crypto, albeit with regulations. In contrast, the central government wants to encourage blockchain-based technologies, research, and innovation. Back June, rumours started floating that the finance ministry is undertaking inter-ministerial consultations to ban crypto in India.

Lawmakers set to take the legislative route to ban crypto in India

In 2018, the Reserve Bank of India, the countrys central bank, put a blanket ban on cryptocurrency operations in India. Subsequently, a case was filed by various crypto exchanges in the Supreme Court against the arbitrary order passed by the central bank. After a long legal battle spanning almost two years, the apex court ruled in favor of the crypto exchanges and lifted the ban.

The judgment sparked a new wave of interest in cryptocurrencies resulting in a massive surge in cryptocurrency trading. Paxful stated that its Indian operations reportedly grew by 883 percent in the period from January to May 2020. WazirX, an India-based crypto exchange, reported 400 percent growth in March 2020 alone.

Indian government flip flops ...

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