India Once Again Discusses Banning Of Cryptos

India has been vocal about its stand towards cryptocurrencies. In a recent report, the government of the country is once again renewing its decision to completely ban digital currencies. Here is everything about it in a nutshell.

Banning Cryptos in the Country

According to the official report, a number of government departments in India have supported the idea of a total ban on cryptos. And, as expected, this will be applied on both the issuance and trading of these digital assets. The departments in favor of the infamous ban include Central Board of Direct Taxes, the Department of Economic Affairs (DEA), the Investor Education and Protection Fund Authority, and the Central Board of Indirect Taxes and Customs.

A draft bill called “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019 has already started circulating around these aforementioned government departments. Although it remains unclear what the bill is trying to refer to in terms of “digital currencies,” the central bank of the country has reportedly begun its efforts in researching a so-called digital rupee.

Also, there is a final bill, which is said to be completely based on feedback directly from the consulted government agencies. This bill, in particular, is believed to be proposed to the next government come May, which is the month right after the national elections.

Cryptos as Ponzi Schemes

India’s very own Ministry of Corporate Affairs has already given feedback to the DEA, suggesting that almost all digital currencies are run as Ponzi schemes in an attempt to defraud involved investors. The ministry, based on this narrative, has recommended the idea of having crypto-related prosecutions under the country’s Prevention of Money laundering Act, although this is just for the time being. This is simply due to the fact that the introduction of the above-mentioned cryptocurrency bill will need an ample of time.

According to Anurag Agarwal, the CEO of the Investor Education and Protection Fund (IEPF), the agency is hell-bent at taking a stand against “certain things,” especially when the idea involves the protection of investors. This is most especially the case when it already involves Ponzi schemes, the official added. For the department, this type of scheme involves digital currencies; hence, there is a need to implement a ban.

India’s stand in terms of the deeming cryptos legal is not new actually. It has always been in its narrative since time immemorial. Even back in April 2017, the country’s government has already set up an interdisciplinary committee, which would be responsible for the investigation of the issue.