Are Cryptocurrencies To Be Banned In India Now?

Introduction

Cryptocurrencies have been under consistent speculation due to their anonymous nature of transactions. In various countries, the propagation and usage of cryptocurrencies have been strictly regulated or completely prohibited. Some Nations around the world like Singapore, Luxembourg, Switzerland, and also The United States of America have welcomed and adopted cryptocurrency within their financial domain in order to keep shady activities, under their regulation along with extracting significant profits out of it. However, the Indian subcontinent has expressed a quite reluctant nature towards cryptocurrencies and blockchain technology.

Why are cryptocurrencies banned in India?

India had earlier announced that all The financial institutions must stop any kind of cryptocurrency related operations with its customers. Post which, the citizens who were quite unhappy with this partial cryptocurrency ban in India, resorted to bypassing government regulations in order to transact with Bitcoin. As an indirect and unfortunate consequence of which, money laundering and over the counter trading experienced a significant hike. However, an interdisciplinary committee consisting of experts from various financial departments of India was formed in November 2017. At that point in time, all the crypto related transactions in the country were monitored for illegal activities.

Are the cryptocurrencies banned in India.

However, recently in June 2019 the government of India has taken a strong stand and banned all the cryptocurrency related transactions by proposing the "Banning of Cryptocurrency and Regulation of Official Digital Currency bill 2019". The most prominent reason quoted for such a drastic measure is Money Laundering. The draft also proposes that a person can land up in jail for 10 years if he or she is found to deal with any kind of cryptocurrency transactions as cryptocurrencies are banned in India.

What if Cryptocurrencies are banned in India: Further Implications

The draught bill also proposes that dealing with any kind of cryptocurrency transactions in the country is a non-bailable offense. The draft bill was precisely headed by Subhash Chandra Garg, Secretary Of Economic Affairs. According to various experts, it is also been cited that after cryptocurrencies are banned in India, The Reserve Bank of India would also propose plans to launch it's personalized virtual currency the "Digital Rupee". However, The Reserve Bank Of India earlier held a stand on cryptocurrencies that they cannot be considered as a legal tender, nor the cryptocurrencies are banned in India.

Conditions post cryptocurrencies are banned in India.

Post the cryptocurrency ban in India most of the digital industries have moved to the judiciary in order to seek justice against the Reserve Bank of India. However, the petitioners were left in denial as the supreme court favored The Reserve Bank of India. Many established cryptocurrency exchanges in India, one of the most notable one being, Unocoin, has experienced a significant drop in its traders and cryptocurrency users. As cryptocurrencies are banned in India, it leaves Indians in a state of mind that their freedom is being compromised.