India plans to introduce law to ban cryptocurrency trading

[cryptopediabd]

India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market.

The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media.

The federal government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading, according to two people.

The Indian central bank had in 2018 banned crypto transactions after a string of frauds in the months following PM Narendra Modi’s sudden decision to ban 80% of the nation’s currency. Cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and won respite in March 2020.

India’s decision will be crucial as more Asian nation countries weigh pros and cons of virtual currencies. Rival China, which banned initial coin offerings and virtual currencies in 2017, recently allowed Bitcoin trading as virtual property, not as fiat money. It is also planning its own central bank digital currency. Both Singapore and South Korea regulate crypto trades.

A renewed trading ban could affect more than 1.7 million Indians trading in digital assets and a rising number of companies setting up platforms for the trade, data shows.

Instead of a ban, India needs a regulatory framework to protect uninformed retail consumers “to ensure adequate oversight of the government and the RBI over cryptocurrency businesses,” said Sanjay Khan, Partner, Khaitan & Co, a New Delhi-based lawyer who advises firms. “India can actually benefit from such a regulation to attract cryptocurrency investors and businesses.”

https://economictimes.indiatimes.com/news/economy/policy/government-plans-to-introduce-law-to-ban-cryptocurrency-trading/articleshow/78132596.cms

How many time they are trying to do that! Do you think they will achieve this success by banning cryptocurrency??

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[Poker Player]

I'm not too worried about that but I don't live in India. To ban something doesn't make it disappear and there are many other countries that have regulated crypto.

It will have an impact in the Indian market, that's for sure as Indians won't be able to trade (legally) and there will only remain as users those who use hard wallets, tor, decentralised exchanges...

I hope they think twice and don't pass the law.

[eaLiTy]

India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market.

The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media.

It was just click bait and nothing else, these rumors are already trashed, the cabinet will not be taking cryptocurrency for discussion in the current parliament session and most of the owners of cryptocurrency exchanges already made that clear in social media about the real situation. These articles are meant to create panic and nothing else.

The proposed bill that is mentioned in the article is submitted to the finance minister in 2019 by the Garg committee and after that the Supreme court gave a decision in favor of the exchanges to resume their business and after that there is not much of a change other than articles coming out with fake news about a ban.

[YOSHIE]

How many they are trying to do that! Do you think they will achieve this success by banning cryptocurrency??

The law planned by the Indian government has long been discussed on various boards in this forum, but for now I see only news, there is no definite action from the government that states about it.
Example:

Topic: India will Implement Law For Prohibition of Crypto Trading

Topic: Shocking - With a law, India plans lasting ban on cryptos

OP, coverage in the media cannot be categorized as positive & negative, today saying negative tomorrow can be positive, that's news, what else publishing news is people who are against crypto, so take it easy, nothing bad will happen about crypto in India.

[Rajan055]

Goverments create and apply law only in paper form. They have to wake up and move with digital generation.

[Khajadana]

India cryptocurrecy Legal procec YAA  cryptocurrecy Band Goverment issues

[Harlot]

Everytime I read a news about India having another ban to cryptocurrencies I just ran pass it since I really don't care about now that we are always having conflicting news going back and forth about the state of cryptocurrencies in India. But if they do push through with this kind of law then I would expect India would be missing out a industry where their citizens have a chance to profit from not only by way of trading. If their own government notice that this will be a big hit for their country I would expect them to have some kind of reversal for the anti-crypto law.

[hugeblack]

Did Binance buy an exchange platform in India? I do not think that there will be a ban again because some companies have already started activity in the Indian market, which means that they have received a green light from some legislative bodies.

India has suffered severely from the consequences of the Corona virus, so the influx of more foreign capital will be beneficial to the government, so they will not do much to ban people or prevent them from investing as long as the government gets its share first.

[Findingnemo]

Did Binance buy an exchange platform in India? I do not think that there will be a ban again because some companies have already started activity in the Indian market, which means that they have received a green light from some legislative bodies.

India has suffered severely from the consequences of the Corona virus, so the influx of more foreign capital will be beneficial to the government, so they will not do much to ban people or prevent them from investing as long as the government gets its share first.

Wazirx Binance was primarily named as wazirx which is the exchange binance bought after the court removed the ban from the banking side related to crypto transaction but there is another committee reported that they should consider banning the cryptos in their country after extensive researches made but the one who lead the committee has no knowledge about blockchain or decentralization as per the individual queries made to the person.So basically they don't know what they are doing so made the bill in the pending stage for a while.

[hulla]

How many time they are trying to do that!

Numerous time.

Do you think they will achieve this success by banning cryptocurrency??

Yes, they can successfully ban cryptocurrency is they continue to introduce different kind of laws against crypto which will lead to some restrictions and later total ban because India is somehow an imperialism country but it a shame that their government dont care much about the benefits Indians gained from crypto during the pandemic and economy meltdown.

[hugeblack]

there is another committee reported that they should consider banning the cryptos in their country after extensive researches made but the one who lead the committee has no knowledge about blockchain or decentralization as per the individual queries made to the person.So basically they don't know what they are doing so made the bill in the pending stage for a while.

This point that I wanted to clarify, the court ruled the legality of Bitcoin (as an asset,) so I do not think that a platform like Binance will enter the Indian market if it does not have a green light to start activities.

Also, I do not think that the Indian legislator has the luxury of banning trading in cryptocurrencies due to the consequences of the COVID-19 crisis and the country's need for more foreign exchange.

I do not think that many countries will tighten the laws of currency trading and licensing platforms during the next year, especially India, due to the economic shocks caused by the pandemic.

[amishmanish]

All these speculations about the terrible fate of cryptocurrencies in India stemmed from the Garg Committee report in July 2019. Subhash Chandra Garg was a hotshot high-ranking officer in the Ministry of Finance (Finance Secretary) who had been a darling of the present government. Yet, the way economy has tanked, it is clear that his last few years were not judged kindly by the Prime Minister. He was shunted from Finance Ministry and was handed a portfolio in Ministry of Power. Subsequently, he resigned.

If this is any indication of where the winds are blowing, it seems that the government doesn't aim to outright ban cryptocurrencies. Garg's views of crypotcurrency were almost childish with the typical refrain of "These codes have no value but they have certainly made billionaires at the cost of those who bought them". He was talking about the fall of private crypto-currencies. Contrary to his approach, the Supreme Court judge had treated "Bitcoin" separately and quite intelligently called it the "Adam of cryptocurrencies". Quite clearly, His higness gets it..

[Findingnemo]

there is another committee reported that they should consider banning the cryptos in their country after extensive researches made but the one who lead the committee has no knowledge about blockchain or decentralization as per the individual queries made to the person.So basically they don't know what they are doing so made the bill in the pending stage for a while.

This point that I wanted to clarify, the court ruled the legality of Bitcoin (as an asset,) so I do not think that a platform like Binance will enter the Indian market if it does not have a green light to start activities.

Also, I do not think that the Indian legislator has the luxury of banning trading in cryptocurrencies due to the consequences of the COVID-19 crisis and the country's need for more foreign exchange.

I do not think that many countries will tighten the laws of currency trading and licensing platforms during the next year, especially India, due to the economic shocks caused by the pandemic.

I am not sure that court made the crypto trading is legal, they just removed they can't ban something when the country doesn't have any laws against it so still the condition is neutral and finance already entered into Indian market because they hope Indian government is not going to ban cryptos completely.

But anything can happen for no reason, they banned Chinese apps recently just over night so if someone influence the government to do the it will happen for sure.

[teosanru]

there is another committee reported that they should consider banning the cryptos in their country after extensive researches made but the one who lead the committee has no knowledge about blockchain or decentralization as per the individual queries made to the person.So basically they don't know what they are doing so made the bill in the pending stage for a while.

This point that I wanted to clarify, the court ruled the legality of Bitcoin (as an asset,) so I do not think that a platform like Binance will enter the Indian market if it does not have a green light to start activities.

Also, I do not think that the Indian legislator has the luxury of banning trading in cryptocurrencies due to the consequences of the COVID-19 crisis and the country's need for more foreign exchange.

I do not think that many countries will tighten the laws of currency trading and licensing platforms during the next year, especially India, due to the economic shocks caused by the pandemic.

Actually that is the main problem. Bitcoin doesn't gives them foreign exchange instead takes it away from them. It's because investors or people who would generally use banking channels to transfer money to India would in turn use cryptocurrencies for their payments which would obviously not go through the Banking Channels thereby not giving RBI foreign exchange. Moreover eyeing the current political scenario of India the aurhorities are behaving like they don't care for anyone. Even a farmers bill against which the whole farmer category is protesting is being brought at the stroke of this Pandemic. The Economic policies of the country really haven't been good lately. They have been more leaned towards Corporates and big businesses. If Binance can lobby the Indian Government by doing some favours then definitely you would see legalizing Bitcoin.

there is another committee reported that they should consider banning the cryptos in their country after extensive researches made but the one who lead the committee has no knowledge about blockchain or decentralization as per the individual queries made to the person.So basically they don't know what they are doing so made the bill in the pending stage for a while.

This point that I wanted to clarify, the court ruled the legality of Bitcoin (as an asset,) so I do not think that a platform like Binance will enter the Indian market if it does not have a green light to start activities.

Also, I do not think that the Indian legislator has the luxury of banning trading in cryptocurrencies due to the consequences of the COVID-19 crisis and the country's need for more foreign exchange.

I do not think that many countries will tighten the laws of currency trading and licensing platforms during the next year, especially India, due to the economic shocks caused by the pandemic.

I am not sure that court made the crypto trading is legal, they just removed they can't ban something when the country doesn't have any laws against it so still the condition is neutral and finance already entered into Indian market because they hope Indian government is not going to ban cryptos completely.

But anything can happen for no reason, they banned Chinese apps recently just over night so if someone influence the government to do the it will happen for sure.

Courts don't have power to make a law. They can only make law enforceable to some extent or add certain provisions in existing law. So court has left this matter on Government in it's verdict. But yes you are right anything is happening in India for no reason(except Political gains ofcourse).

All these speculations about the terrible fate of cryptocurrencies in India stemmed from the Garg Committee report in July 2019. Subhash Chandra Garg was a hotshot high-ranking officer in the Ministry of Finance (Finance Secretary) who had been a darling of the present government. Yet, the way economy has tanked, it is clear that his last few years were not judged kindly by the Prime Minister. He was shunted from Finance Ministry and was handed a portfolio in Ministry of Power. Subsequently, he resigned.

If this is any indication of where the winds are blowing, it seems that the government doesn't aim to outright ban cryptocurrencies. Garg's views of crypotcurrency were almost childish with the typical refrain of "These codes have no value but they have certainly made billionaires at the cost of those who bought them". He was talking about the fall of private crypto-currencies. Contrary to his approach, the Supreme Court judge had treated "Bitcoin" separately and quite intelligently called it the "Adam of cryptocurrencies". Quite clearly, His higness gets it..

I think this is the reason there has been a flux. An outright ban would be too harsh on investors while creating a legal mechanism is something which no country has been able to completely do. That's why so far govt. has kept cryptocurrencies at the fate of the market. Moreover who knows how much money in cryptocurrencies is used for election funding etc.

[Saisher]

If this is any indication of where the winds are blowing, it seems that the government doesn't aim to outright ban cryptocurrencies. Garg's views of crypotcurrency were almost childish with the typical refrain of "These codes have no value but they have certainly made billionaires at the cost of those who bought them". He was talking about the fall of private crypto-currencies. Contrary to his approach, the Supreme Court judge had treated "Bitcoin" separately and quite intelligently called it the "Adam of cryptocurrencies". Quite clearly, His higness gets it..

They should set up a study if Bitcoin and Cryptocurrency has a real use case, and not rely on the word of one who are so ignorant on how Cryptocurrency works, they should take the lead of other countries who legalize Cryptocurrency, and these countries are developed countries and it's people are intelligent and technology driven.

[avikz]

If this is any indication of where the winds are blowing, it seems that the government doesn't aim to outright ban cryptocurrencies. Garg's views of crypotcurrency were almost childish with the typical refrain of "These codes have no value but they have certainly made billionaires at the cost of those who bought them". He was talking about the fall of private crypto-currencies. Contrary to his approach, the Supreme Court judge had treated "Bitcoin" separately and quite intelligently called it the "Adam of cryptocurrencies". Quite clearly, His higness gets it..

They should set up a study if Bitcoin and Cryptocurrency has a real use case, and not rely on the word of one who are so ignorant on how Cryptocurrency works, they should take the lead of other countries who legalize Cryptocurrency, and these countries are developed countries and it's people are intelligent and technology driven.

A study!! Lol! The government offices in India are headed by One-exam-wonder beaurocrats who are more willing to suck the dick of political leaders than to conduct a study. I have worked with few of them for 3 years and I know how the system works.

India's priority is to build temples instead of factories. Cryptocurrency is not even a matter of discussion to them!

[oprahwindfury]

It has been so many times already where I saw the news of crypto banning and it hasn't done yet.Now it's the time I try to ignore the post.Reason is India is a big country and a lot of people are here whose are in cryptography,who has invested here already.So event what the matter is banning crypto trading will not effect the crypto world.As the people aren't leaving the cryptography.

[coin-investor]

India’s decision will be crucial as more Asian nation countries weigh pros and cons of virtual currencies. Rival China, which banned initial coin offerings and virtual currencies in 2017, recently allowed Bitcoin trading as virtual property, not as fiat money. It is also planning its own central bank digital currency. Both Singapore and South Korea regulate crypto trades.

A renewed trading ban could affect more than 1.7 million Indians trading in digital assets and a rising number of companies setting up platforms for the trade, data shows.

Instead of a ban, India needs a regulatory framework to protect uninformed retail consumers “to ensure adequate oversight of the government and the RBI over cryptocurrency businesses,” said Sanjay Khan, Partner, Khaitan & Co, a New Delhi-based lawyer who advises firms. “India can actually benefit from such a regulation to attract cryptocurrency investors and businesses.”


How many time they are trying to do that! Do you think they will achieve this success by banning cryptocurrency??

I have seen so many threads like this in this forum the government of India is thinking backward, where majority of industril and supower power countries are adopting Cryptocurrency, her eis India trying to bean Cryptocurrency, India is one of the worse place for Cryptocurency traders and traders living in India will have to resort to underground trading or get out in India.

[Lorence.xD]

I have seen this thing a lot of times now. India will enforce but given the size of their country and their steady population growth, I do not think that this will be taken seriously, it might be enforced for a week or two but I do not think that anything will come out after that. In my opinion, the government is fighting a losing battle against their people. Best course of action is to accept the adoption of cryptocurrency that makes a compromise between the government and the masses, hopefully they will do this. But with their current tug of war between banning and regulation, the current conundrum will be far from over.

[eaLiTy]

A study!! Lol! The government offices in India are headed by One-exam-wonder beaurocrats who are more willing to suck the dick of political leaders than to conduct a study. I have worked with few of them for 3 years and I know how the system works.

India's priority is to build temples instead of factories. Cryptocurrency is not even a matter of discussion to them!

I am glad to see that you are identifying the virus that is affecting this country, i am not talking about the pandemic or any other virus but the political  polarization and the lies that are spread with the help of media channels and for most part the courts are trumpeting according to the central government and in that predicament where do you they get time to understand or discuss about cryptocurrency and is there anyone in the ruling party that could understand these things  .

We are witnessing demagoguery for the past few months and no mainstream media is discussing about the real problems India is facing rather they are diverting with sensationalism and i feel pity and angry about the situation we are in. We are seeing these kind of topics quite often and even if they ban without any review or discussion even though i am aware of the studies they submitted  i will not be surprised because they care less about the common people or the difficulties faced by people or small businesses or innovation.