Movements to ban cryptocurrencies

Mumbai, Ta. 16 September 2020, Wednesday

The Government of India plans to ban cryptocurrencies in view of the increasing trade in the country in recent times. A bill in this regard will be tabled in the Cabinet and will be tabled in Parliament. Some Asian countries chose to continue trading cryptocurrencies under regulation rather than ban them.

The Reserve Bank of India (RBI) had banned the trade in digital cryptocurrencies in 2012, but lost the case to the Supreme Court.

The recent lifting of the ban by the court has seen a 40 per cent increase in cryptocurrency trading, especially during the lockdown period, from March to April.

Many people lost their jobs due to the economic downturn and a large number of people turned to the cryptocurrency business as a means of earning a living at home.

An estimated 1.5 million Indians trade in these currencies and many companies are setting up trading platforms.

The government has decided to introduce the bill as there is a prevailing view in the government that cryptocurrency trading will be effective only if it is banned by law, government sources said.