India has never been known as a crypto-friendly country, but now things might be about to get way worse for Indian cryptocurrency enthusiasts. The Indian government is thinking about implementing a new ban on Bitcoin and other digital assets. According to one Indian government official who wishes to remain anonymous, the potential ban could include the “sale, purchase and issuance of all types of cryptocurrency” in the country.
Multiple government agencies in India have taken a negative stance towards bitcoin and other digital assets. A regulatory committee that included members from India’s financial regulators like the DEA, CBDT, CBIC and the IEPFA took a public stance against cryptocurrency and stated that there has already been “a lot of delay in taking action against cryptocurrency.” They concluded that “there is an urgent need to ban sale purchase and issuance of cryptocurrency” in India.
India’s regulators think that the existence of bitcoin and other digital assets ultimately serve no purpose and went as far as calling blockchain projects scams.
“When it comes to investor protection, the IEPFA has to take a stand against certain things. Against Ponzi schemes, we are taking a stand. We think that cryptocurrency is a Ponzi scheme and it should be banned.”
India’s anti-cryptocurrency Finance Secretary Subhash Chandra Garg led the committee. He’s been openly against bitcoin and especially ICO’s in social media and in public. And the laws may soon reflect his opinions.
“The ministry of corporate affairs has in its feedback to the department of economic affairs pointed out the sale purchase and issuance of cryptocurrencies such as Bitcoin, Ethereum & Cashcoin etc. are being done by individuals and companies on false inducements of massive returns.”
These potential anti-crypto laws come as no surprise, with regulators constantly issuing warnings on crypto. Just last week the Reserve Bank of India released a list of financial products, technologies, and services that they deemed to have a negative impact on India’s economy. Cryptocurrency related investments were all over the list.
Aside from warnings about the obviously risky ICO investment class, they advised Indians to avoid trading, investing, and settling in crypto assets altogether.