New laws are under consideration in India that could ban trading in cryptocurrency in the country if passed, reported Bloomberg.
India’s parliament must still discuss and approve the bill before it becomes law and subsequently implemented.
This comes at a time when most Asian nations are doing the opposite. Many countries in the region are becoming evermore encouraging of cryptocurrency trading in their respective countries. China recently passed legislation that further protected digital assets, bringing them under the sphere of the country’s Law of Property.
Blockchain still welcomed in India
Spokespeople for India’s government have reported that they are still keen on the use of blockchain, the technology underlying cryptocurrency, in India’s systems, but not on digital currencies themselves.
The ban comes as India’s central bank for a number of years has been wanting to limit the functionality of cryptocurrency in the country. This is mainly due to many incidents of money laundering and fraud connected to cryptocurrency.
However, Coindesk further reported that India’s federal government still very much welcomes the exciting use of blockchain technology in managing land deeds and records, pharmaceutical supply chains, and records of educational certificates.
India’s Reserve Bank had initially tried to ban the trading of cryptocurrency in 2018. This came after aforementioned fraudulent transactions occurred in the country in connection to cryptocurrency. The Indian Supreme Court later struck down the bank’s ban. But sentiments in many of the country’s financial institutions have remained averse to cryptocurrency trade in the country.
Since the ban had been overturned, cryptocurrency exchanges in India saw an increase in trading on their platforms. Analysts and commentators have subsequently advised the government to, instead of an outright ban, regulate the usage of Bitcoin and other popular cryptocurrencies.