India Plans to Introduce Law to Ban Cryptocurrency Trading
∑ Government plans to introduce its own virtual currency
∑ Crypto fraud concerns rising since March as trade soared
By Archana Chaudhary and Siddhartha Singh, Bloomberg
September 15, 2020
India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market.
The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media.
The federal government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading, according to two people. Indiaís finance ministry spokesman didnít respond to call and a message seeking comments.
Cryptokidnapping, or How to Lose $3 Billion of Bitcoin in India
The Indian central bank had in 2018 banned crypto transactions after a string of frauds in the months following Prime Minister Narendra Modís sudden decision to ban 80% of the nationís currency. Cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and won respite in March 2020.
The win in court prompted an almost 450% surge in trading in just two months since March, according to TechSci Research, reviving concerns as more Indians risk savings amid job losses and an economic slowdown worsened by the coronavirus pandemic. Bitcoin marketplace Paxful reported 883% growth between January to May 2020 from around $2.2 million to $22.1 million. WazirX, a Mumbai based crypto exchanger grew 400% in March 2020 and 270% in April 2020 on month-on-month basis, according to TechSci.
Regulating Trades ...