According to an article by Archana Chaudhary and Siddhartha Singh published by Bloomberg, India intends to introduce the law to ban cryptocurrency trading.
This law would prohibit the purchase and sale of cryptocurrencies, as has already happened in other Asian economies that have chosen to regulate the crypto market.
The new bill would now be under discussion within the country’s government and will be sent to parliament for possible ratification at a later date.
The source of this information is anonymous, and given the country’s confused approach to cryptocurrencies over time, it shouldn’t necessarily be taken as reliable information.
Such measures were already adopted by China in 2017 but were not particularly effective, and given that the Indian country is unlikely to be able to operate a regime of controls that is superior to that of China, a similar outcome is to be expected for these stringent regulations.
Another thing in common with the Chinese approach is the Indian government’s support for the development of blockchain technologies, forgetting that the real blockchains are only decentralized ones and that they can only survive if they have their own native cryptocurrency.
It is therefore fair to assume that the path that cryptocurrencies will take in the next few years in India may repeat the path taken in recent years in China, where trading on crypto exchanges has by no means stopped, rather it has simply shifted to foreign exchanges.
Cryptocurrency ban in India, the previous one
Moreover, Indian exchanges have already won a first battle against the government thanks to the sentence of the Constitutional Court of the country that declared the previous ban illegitimate, so they will almost certainly continue to fight.
Another fact is that, since then, the crypto trading volume on Indian exchanges has increased by 450%, showing a clear interest in these instruments on the part of the population.
For example, other Asian countries, such as South Korea, rather than banning cryptocurrency trading, they have strictly regulated the activity of crypto exchanges, which continue to flourish.
And China is even planning to release its own digital currency soon, probably based on a centralized distributed ledger.
India has already lost its first battle against cryptocurrencies and may end up losing the second, which currently seems somewhat anachronistic. All without probably even having popular support.