Just months after the Supreme Court of India overturned the country’s de-facto cryptocurrency ban, it seems the government may be preparing to implement a new ban. 

According to a 4 August report on Indian news website Moneycontrol, a government official has said two government ministries, and the Reserve Bank of India, are engaged in drafting new legislation to outlaw cryptocurrencies in the country. 

Specifically, the source told Moneycontrol that the Ministry of Electronics and Information Technology, Ministry of Law and Justice, and Reserve Bank of India (RBI), are working with each other to draw up a law banning crypto trading.

Apparently, the parties are confident that the new law will get ratified during the next parliamentary session, which should begin in late August or early September. 

AYO.NEWS says:

The news of a possible crypto ban will be a hammer blow for the Indian cryptocurrency sector, which had successfully challenged the RBI’s blanket ban on banks servicing crypto businesses in the courts. 

However, there are signs that the COVID-19 crisis has increased the profile, and acceptance, of cryptocurrencies among both the public and business in India, so any attempt to pass a crypto ban may run into more opposition than its proponents expect. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020