The cryptocurrency community in India has been rumbled following rumors of a note being circulated by the Finance ministry regarding another crypto ban.
As ZyCrypto reported, the government in India is looking to introduce a new law that will see the ban of cryptocurrencies.
This circular has reportedly been associated with a previous bill proposed by the inter-ministerial committee (IMC) to ban cryptocurrencies back in Feb 2019.
The new note comes months after the Supreme Court in India struck down the 2018 circular that had been issued by the Reserve Bank of India (RBI), prohibiting banks from engaging in crypto-related payments. While news of the likely ban has teased the cryptocurrency community, many crypto-related companies are still optimistic about the future.
Crypto regulation leaning on the positive side
Nischal Shetty, the CEO of Wazirx, a local cryptocurrency exchange in India, emphasized that the two documents pointed out in the report are different. He stated that “I don’t think there’s anything to worry about the note as of now.” Stressing that there is a slim chance the government would stop a booming sector. Shetty further added that he believes India will follow the footsteps of developed countries like Japan, the USA, Australia, and the United Kingdom when it comes to cryptocurrency regulations.
While commenting on the matter, Sathvik Vishwanath, Unocoin CEO, explained:
“Given that the supreme court did hear all aspects of crypto within India and abroad and have taken a stance to support the industry, the old report may be considered outdated. The industry players will be invited to intervene while forming the regulation for crypto from the information that we have.”
It seems India is at a crossroads when it comes to banning cryptocurrencies. On the one hand, the nature of cryptocurrencies will make it very hard for authorities to enforce the ban. On the other, a ban will cause the country to miss out on potential revenue that could be gained when cryptocurrencies become mainstream.
Notably, the news, despite creating panic in the community, has not affected the cryptocurrency market.