India Would Ban Private Cryptocurrencies Under Proposed Legislation

[vennali]

The Indian Parliament will consider a government-introduced bill that would ban private cryptocurrencies in its upcoming budget session. Given the ruling party controls both houses of Parliament, the chances of the bill’s passage are considered good.

According to the Lok Sabha Bulletin published Friday, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, seeks to prohibit all cryptocurrencies in India and provide a framework for creating an official digital currency to be issued by the Reserve Bank of India (RBI).

While the bill is anti-private cryptocurrencies, it will allow certain exceptions to promote the underlying technology of cryptocurrency and its uses, the bulletin said. The India Parliament has three annual sessions: Budget session, which runs from January to March, Monsoon session and Winter session.

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[aysg76]

I don't think they can ban it as the Government will have liability to dispose of the holdings. They can't wipe out Economic wealth without proving that bitcoin is harmful. Last time Supreme Court quoted some doctrine to overturn the RBI decision. Moreover this time we have precedent so there are chances the supreme court will overturn it again as there is no proof that bitcoin is harmful.