India drafts bill to repeat ban on Crypto trade
India prepares to bring a new law restricting the exchange of security crypto, setting it out of tune alongside other Asian nations which have decided to regulate the emerging market to minimize crypto risk. The draft is estimated to be examined shortly through discussions by the cabinet prior to forwarding the bill to parliament. The Central Government of India will aid in nurturing the blockchain innovations which empower cryptocurrencies like ICO bitcoin, but it shall not promote the use, trade, or exchange of cryptocurrency.
In 2018 India’s Central bank, the Reserve Bank of India had prohibited crypto exchanges after a series of frauds took place in the days following the demonetization of Indian Bank Notes affecting a major chunk around 80% of the currency circulation. In September, Crypto trading platforms countered with a claim in the Supreme Court and earned respite in March this year.
The victory in the supreme court incited a roughly 450% spike in trading in a mere couple of months since this March. This has raised alarms as many Indians risk their savings in the midst of growing unemployment and an economic lull further degenerated by the COVID-19 pandemic. STO Bitcoin trading platform Paxful gained $20 million, an 883% jump from January to May 2020. Mumbai based crypto trader WazirX saw an immense growth of 400% in March 2020 reportedTechSci.
Regulations set by India can have a tremendous impact on the crypto scene. Leading Asian economies like China had initially banned crypto in 2017 but now look to gain a boost from the digital currencies and blockchain. China is soon going to launch its own digital currency. Singapore and South Korea have legalized digital currency trading and establishing crypto trading companies.
Niti Aayog, India’s think tank, is investigating the potential of blockchains to publicly store value-based blocks across databases. For instance, maintaining property records, pharma supply records, or database of educational certificates. While the government is planning to use blockchain innovations, it is reluctant to allow crypto trade. Another trading prohibition can impactover 1.7 million Indian users who exchange digital assets along with withthegrowing number of firms establishing trade platforms.
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