Indian Lawmakers Allegedly Mulling Ban on Cryptocurrencies

Lawmakers in India are mulling a ban on Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

That’s according to a report published this Friday by The Economic Times, a local outlet based in Mumbai.

Government officials told the outlet that a new draft law - the “Banning of Cryptocurrencies and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term of Official Digital Currencies Bill 2019" - has been passed to politicians.

Several government bodies in the country, including the Department of Economic Affairs and Central Board of Direct Taxes, have said that the sale, purchase, and issuance of digital assets should be banned.

Indian government officials have been looking at cryptocurrency for years.

Back in November of 2017, a panel was set up - led by the country’s economic affairs secretary Subhash Chandra Garg - to look at the potential impact digital assets could have on the Indian economy.

Protecting the rupee

In February, reports emerged that the committee had concerns about the impact cryptocurrencies could have on the rupee, India’s national currency.

Like the Chinese, Indian authorities take a very hard line on anything that can devalue their currency.

For instance, aside from some authorized businesses and money exchanges, it’s illegal to pay for goods and services in foreign currency.

Last year, the Central Bank of India effectively banned banks from doing business with companies dealing in cryptocurrencies.

Documents allegedly seen by The Economic Times indicate that a ban on cryptocurrency will be done under terrorism financing laws. Authorities may also use Anti-money laundering or fraud legislation in the country.

Indian authorities often justify their foreign exchange laws by citing anti-terrorism laws.

Any legislation will have to wait until at least the end of May. India, the world’s largest democracy by population, is in election season and a new government may take power next month.