India plans to introduce law to ban Bitcoin and other private cryptocurrencies – Heaven32

India plans to introduce a law to ban private cryptocurrencies like bitcoin in the country and provide a framework for the creation of an official digital currency during the current budget session of parliament.

In the agenda (PDF) posted on the lower house website, the legislation aims to “ ban all private cryptocurrencies in India ”, but allow “ certain exceptions to promote the underlying technology . [blockchain] of crypto-currencies and their uses ”.

The law also aims to “create an enabling framework for the creation of the official digital currency” to be issued by the country’s central bank, the Reserve Bank of India, according to the agenda.

In 2018, an Indian government panel recommended banning all private cryptocurrencies and proposed up to 10 years in prison for violators. The panel also suggested that the government explore a digital version of fiat currency and ways to implement it.

At the time, the RBI said the move was necessary to curb the “isolation” of the country’s financial system. He had also argued that Bitcoin and other cryptocurrencies could not be treated as currencies because they are not metal, do not exist in physical form, and have not been stamped by the government. The 2018 central bank notice panicked several startups and local businesses offering cryptocurrency trading services. Almost all have since closed or turned to serve other markets.

This proposal was challenged by several exchanges and traders, who filed a lawsuit in the Supreme Court. The country’s Supreme Court ruled in its favor last year. This decision was considered “historic” but did not affect the previous circular at the political level.

“Given that the government plans to introduce the bill during this session of Parliament, we are confident that the government will certainly listen to all stakeholders before making a decision,” said Sumit Gupta, Co-Founder and CEO of CoinDCX , a cryptocurrency exchange in India. .

“We are discussing with other stakeholders and we will definitely start a deeper dialogue with the government and show how we can really create a healthy ecosystem in unison,” he said.