A bill to ban Cryptocurrency in India has been floated for inter-ministerial consultations by the finance ministry, as per the reports. Earlier in 2018, The Reserve Bank of India (RBI) restricted the use of the banking system for crypto-related payments but that was challenged and was removed by the Supreme Court in March 2020. This decision had kick-started the crypto opportunities for India As per the new Bill, if you Markets will get killed, plus if you have ever invested in cryptocurrency this may pose a problem for you.
In its previous avatar (in mid-2019), The bill declared criminalization of possession, use or trading in cryptocurrency, and prescribed imprisonment of up to 10 years for such activities.It is yet to be cleared if the new bill will have some provisions. Some experts do not believe that the new law can retain the draconian provisions of the original bill.
“The Supreme Court had ruled that the government must show that the activity concerned was detrimental to the public interest. Since RBI failed to show this with its circular, this was struck down. I don’t think the government will introduce a law in conflict with this principle and if they do the courts might strike it down,” said Rashmi Despande, Partner, Khaitan & Co, a law firm. She also added that any such law will come after a process of opening up to public comments followed by the passage in both houses of Parliament.