The Indian government is reportedly preparing to introduce a new law that will prevent citizens from participating in cryptocurrency trading going forward. In a searing attack on the government, Ripple CEO Brad Garlinghouse indicated that the decision to ban crypto trading cripples the nascent crypto industry.
India’s Proposed Bill Targets Cryptocurrency Trading
According to Bloomberg, India’s federal cabinet is examining a new bill before sending it to parliament to be debated. Sources familiar with the matter told the publication that India is interested in exploring blockchain technology, but it is against cryptocurrency trading.
With already stringent regulations in place, this is not the first time India is said to be planning to forbid digital assets in the country. Despite cryptocurrency becoming increasingly popular in India, the fledgling asset class is still sort of an endangered species in the country.
If you can recall, the Reserve Bank of India (RBI) introduced a ban in 2018 that restricted commercial banks from servicing cryptocurrency firms. In what was a huge feat, the country’s supreme court overruled the ban imposed by the central bank in March of this year.
Trading volumes on local exchanges soared following the supreme court’s monumental ruling. However, the newly proposed bill could spell trouble for the crypto industry that has been thriving in recent months.
Ripple CEO Bashes India’s Bitcoin Plans
In a tweet on Wednesday, Ripple CEO Brad Garlinghouse voiced his opinion regarding India’s decision to ban the trading of cryptocurrencies. Garlinghouse noted that he is quite disappointed with the country’s indecisiveness with crypto as it is “hamstringing” the industry. He went further to suggest that cryptocurrency would be very pivotal in serving India’s large unbanked population.
As we speak, there are roughly 190 million unbanked adults in India. The country comes second after China. And with the world’s largest remittance market, crypto has the potential to empower financially excluded individuals in the region.