India to face a complete ban on Cryptocurrencies?

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Things are not looking good in India regarding cryptocurrency. According to The Economic Times a draft is apparently going around that could lead to the complete ban of cryptocurrency in India. A committee has been made consisting of the Department of Economic Affairs (DEA), the Central Board of Direct Taxes (CBDT), the Central Board of Indirect Taxes and Customs (CBIC) and the Investor Education and Protection Fund Authority (IEPFA). The draft bill is reportedly titled “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″

Unfortunately it seems that the committee formed as well as others that are a part of it share the idea of banning the “sale, purchase and issuance of all types of cryptocurrency.” They are also thinking of banning digital currency that comes under the Prevention of Money Laundering Act (PMLA) as according to them cryptocurrency could be used for money laundering. According to the Ministry of Corporate Affairs cryptocurrency can be used in fraudulent schemes to “defraud gullible investors.

Last year the government had formed a committee that was headed by Subhash Chandra Garg Department of Economics affairs secretary that was set up to deal with the “conflicting opinions on the RBI ban.” The next meeting that was supposed to take place January and then February has gotten postponed to July 2019. The case of Crypto vs RBI has been adjourned by the Supreme Court on request by the government. It will now take place in July probably in the first couple of days on a non-miscellaneous day. Crypto Kanoon tweeted, “Supreme court has adjourned the #CyprtovsRBI matter on the request of Government’s counsel. Matter fixed for final arguments in the second week of July on a non-miscellaneous (regular) day. 

Since this is quite an important matter the Supreme Court decided to agree with the request as the hearing could take up to a day if not longer and would be better to take place on a regular day (Tuesdays to Thursdays). Regular days usually consist of those cases which are almost complete or on their last argument. From the 13th of May till the 30th of June the court will remain closed hence the date has been postponed to July.  Other members of the committee include members of the Ministry of Electronics and Information Technology, RBI, Securities and Exchange Board of India as well as the revenue secretary. Though the law concerning the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″ won’t be passed until after the elections finish and the next government comes in power at the end of May this is a huge hit to crypto enthusiasts and we all hope that this draft does not go through.