India is considering banning cryptocurrencies

Three months after the Supreme Court overturned the Reserve Bank of India's (RBI) ban on cryptocurrencies,The Indian Ministry of Finance has again proposed banning cryptocurrencies by law, India Times writes.

This proposal will first be considered in the Council of Ministers, and then it will be sent for final consideration to parliament.

Last July, a government commissionled by former Indian finance minister Subhash Garg, drafted a law to completely ban cryptocurrencies. The bill proposed to introduce a prison term of up to 10 years for cryptocurrency users, as well as fines of up to 25 crore ($ 3.2 million).

Proposal from the Ministry of FinanceIndia, again caused fear in the Indian cryptocurrency community. Over the past three months, after the lifting of the ban on RBI by the Supreme Court, there has been great enthusiasm in the country's crypto industry. Also, new startups appeared that expressed their willingness to raise this industry.

However, the new proposal may again becomea serious blow for companies and individuals involved in this space. Companies such as Binance and OKEx, which have decided to enter the Indian market, will have to retreat.

Representative of the consulting firm AKM GlobalHe told reporters that if the law is adopted in the same form as proposed last year, it will "completely destroy the crypto industry of India."

The situation is not as fatal as it might seem at first glance

However, the CEO of a leading Indian crypto exchangeWazirX Nishal Shetty considers such a presentation of information biased. According to him, the authors combined two documents in the publication: the old proposal for the introduction of draconian measures and the new proposal for regulation.

“In the article, two of these documents are submitted asin a way that you might think the old bill is moving forward. These are two different things that have no connection with each other. Do not worry, our Prime Minister will not allow the dreams of over 5 million representatives of Indian youth in the cryptocurrency industry to collapse. The level of understanding and motivation for innovation among our ministers is commendable. I have met and discussed cryptocurrencies with some of them, and I’m sure that positive regulation awaits us ”He states.

“This is just a government document aimed at involving other ministers in the discussion- said Tanvi Ratna, CEO of Policy 4.0.

This is not some unexpected step, butconsistent development of events following the recommendation of the Ministry of Finance to ban cryptocurrencies in February 2019. The bill can be either amended or rejected by parliament. ”

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